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Calculate the total return for a stock with a market price on January 1 of $20...

Calculate the total return for a stock with a market price on January 1 of $20 and $16 on December 31 that pays quarterly dividend of 50 cents

Solutions

Expert Solution

Use the Rate function in excel to solve this. nper=1, PMT= 0.5*4 = 2 , PV=$20, FV=$16

the screenshot for formula is below

Thus the stock is providing a return of -10.00%.

jeff jeffy answered 5 months ago
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