You bought a share of stock for $53, held it for a year, during which time you collected four quarterly dividends of $0

Finance Dec 25, 2020

You bought a share of stock for $53, held it for a year, during which time you collected four quarterly dividends of $0.17 each. At the end of the year, you sold the stock for $58. What is the total return? Report your answer in percent terms rounded to two decimal places Your Answer: Answer units

Expert Solution

The total return is computed as follows:

= (Selling price - Purchase price + Quarterly dividend x 4) / Purchase price

= ($ 58 - $ 53 + $ 0.17 x 4) / $ 53

= $ 5.68 / $ 53

= 10.72%

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