You purchased a stock at a price of $25. A year later the stock is worth...

You purchased a stock at a price of $25. A year later the stock is worth $34, and during the year it paid $3.0 in dividends. What was the rate of return you earned on this investment?

Expert Solution

Rate of Return = (Sale Price - Buy Price + Dividend)/Buy Price

Rate of return = ($34 - $25 + $3)/$25

Rate of return = $12/$25

Rate of Return = 0.48 = 48.00%

jeff jeffy answered 2 years ago

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