Question

Suppose a stock had an initial price of $88 per share, paid a dividend of $2.10 per share during the year, and had an ending share price of $96. Compute the percentage total return.

Answer 1

Answer:

Percentage total return = 0.1147 or 11.47%

Explanation:

Below is the calculation for a percentage of total return:

The initial price of share = $88

Dividend amount = $2.10

Ending price of share = $96

Use the below formula to find the percentage return:

Percentage total return = [(Ending price - initial price) + Dividend amout] ÷ Initial price

Percentage total return = [(96 - 88) + 2.10] / 88

Percentage total return = 0.1147 or 11.47%