A stock that went from $32 per share at the beginning of the year to $35 at the end of the year and paid a $2 dividend provided an investor with a ____ return.
A) 9.4%
B) 12.7%
C) 14.7%
D) 15.6%

Question

Quizplus · Accepted Answer

To calculate the return on the investment, we need to take into account both the increase in stock price and the dividend payment.

The increase in stock price is (35-32) = 3.

The dividend payment is $2.

Therefore, the total return on the investment is (3+2)/32 = 15.6%.

Therefore, the correct answer is D.

A Stock That Went from $32 Per Share at the Beginning