Answer:
Percentage Return = 5.83%
Explanation:
Given data:
per share cost =$60.00
dividend $1.00 per share
stock price $62.50
total number of share = 400
WE know that return is given as
Return = (Ending Value - ( Beginning Value + Income)
where,
Ending value = stock price* number of shares
Beginning value = per share cost * number of shares
income = dividend* number of shares,
so we have return value
= ($62.50 x 400) - ($60.00 x 400 + $1.00 x 400) = $1400
[tex]Percentage\ Return = \frac{1400}{60 x 400}[/tex]
Percentage Return = .0583
Percentage Return = 5.83%
