A stock that went from $120 per share at the beginning of the year to $122 at the end of the year and paid a $1 dividend provided an investor with a ____ return.
A) 1.25%
B) 1.67%
C) 1.99%
D) 2.50%

Question

Quizplus · Accepted Answer

The total return is calculated by adding the dividend to the increase in stock price, then dividing by the beginning price: (($122 - $120) + $1) / $120 = $3 / $120 = 0.025 or 2.50%.

A Stock That Went from $120 Per Share at the Beginning