Suppose a stock had an initial price of $100 per share, paid a dividend of $3.10

Question

Suppose a stock had an initial price of $100 per share, paid a dividend of $3.10 per share during the year, and had an ending share price of $79.50.

Compute the percentage total return. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

Suppose a stock had an initial price of $100 per share, paid a dividend of $3.10 per share during the year, and had an ending share price of $79.50.

Explanation / Answer

Return = dividend amount received+appreciation or - decline in stock price

dividend = $3.10

decline in share price = 100 - 79.50 = $20.50

Net return = 3.10 - 20.50 = -$17.40

% return = net return/initial price

= -17.40/100

= - 17.40%

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