Question

Sue purchased a stock for $45 a share, held it for one year, received a $234 dividend, and sold the stock for S46.45, What nominal rate of return did she earn

Answer 1

Answer: 8.42%

Explanation:

A dividend of $234 is impossible given the price so I will assume you meant to type $2.34.

Nominal rate of return in that case is;

= (Selling price - Purchase price+ Dividends) / Purchase price

= (46.45 - 45 + 2.34) / 45

= 8.42%