Last year you bought some Alpha stock for $26.75 a share. It is currently selling for $32.50. You received a dividend of $2.25 during the year. What is your total rate of return?
A) 30%
B) 21%
C) 8.5%
D) 12%

Question

Quizplus · Accepted Answer

The total rate of return is calculated by adding the capital gain and the dividend received, then dividing by the original price. Capital gain = $32.50 - $26.75 = $5.75. Total return = $5.75 + $2.25 = $8.00. Rate of return = ($8.00 / $26.75) * 100% = 29.91%, which rounds to 30%.

Last Year You Bought Some Alpha Stock for $26