The holding period return on a share was 32%. Its beginning price was $25 and its cash dividend was $1.50. Its ending price must have been ________.
A)$28.50
B)$33.20
C)$31.50
D)$29.75

Question

Quizplus · Accepted Answer

Holding period return = (Ending Price - Beginning Price + Dividends) / Beginning Price
32% = (Ending Price - 25 + 1.5) / 25
1.32 = (Ending Price - 23.5) / 25
33 = Ending Price - 23.5
Ending Price = $31.50

The Holding Period Return on a Share Was 32