Answer:
19.4%
Explanation:
Original cost of stock= $27
Disposal price = $29.25
Dividend per quarter= $0.75
Total dividend = $0.75 * 4 = $3
Gain on disposal = Disposal price - Original cost of stock
= $29.25 - $27 = $2.25
Return on investment= Total dividend + Gain on share disposal
= $3 + $2.25 = $5.25
Percentage return on
investment = Return on investment /Original cost of stock * 100%
= $5.25/ $27 * 100%
= 19.44444444%
= 19.4%
That is, Ashley percentage holding period return on this investment is approximately 19.4%
