Suppose a stock had an initial price of $77 per share, paid a dividend of $1.55...

Suppose a stock had an initial price of $77 per share, paid a dividend of $1.55 per share during the year, and had an ending share price of $83. Compute the percentage total return.

Multiple Choice

9.81%

9.10%

10.91%

10.30%

9.31%

Expert Solution

Percentage total return = (Ending share price - Initial price + Dividend) / Initial price

Percentage total return = ($83 - $77 + $1.55) / $77

Percentage total return = 0.0981 or 9.81%

jeff jeffy answered 2 years ago

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