The holding-period return on a stock was 25%. Its ending price was $18, and its beginning price was $16. Its cash dividend must have been ________.
A) $.25
B) $1
C) $2
D) $4

Name: The holding-period return on a stock was 25%. Its ending price was $18, and its beginning price was $16. Its cash dividend must have been ________. A) $.25 B) $1 C) $2 D) $4
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Question

Quizplus · Accepted Answer

HPR = (P₁ + DIV - P₀)/P₀ HPR × P₀ = P₁ + DIV - P₀ HPR × P₀ - P₁ + P₀ = DIV .25 × $16 - $18 + $16 = $2

The Holding-Period Return on a Stock Was 25