The common stock of Jesup's returned a nifty 24.6% rate of return last year. The dividend amount was $0.40 a share which equated to a dividend yield of 0.6%. What was the rate of price
Appreciation for the year?

Question

Quizplus · Accepted Answer

The rate of price appreciation is calculated as the difference between the rate of return and the dividend yield. 
Rate of price appreciation = Rate of return - Dividend yield 
Rate of price appreciation = 24.6% - 0.6% 
Rate of price appreciation = 24.0% 
Therefore, the rate of price appreciation for the year was 24.0%, which is option B.

The Common Stock of Jesup's Returned a Nifty 24