Question

In: Finance

Suppose a stock had an initial price of $68 per share, paid a dividend of $1.45...

Suppose a stock had an initial price of $68 per share, paid a dividend of $1.45 per share during the year, and had an ending share price of $77. Compute the percentage total return.

Solutions

Expert Solution

Total Return = (Ending Share Price - Initial Price + Dividend ) / Initial Price
Total Return =
Ending Price = $                   77.00
Less: "-"
Initial Price $                   68.00
Add: "+"
Dividend $                      1.45
Total $                   10.45
Divide By "/" By
Initial Price $                         68
Total Return =                     0.1537
Total Return in % = 15.37%
Answer = Percentage total return = 15.37%

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