McCoy paid a one-time special dividend of $3.20 on 18 October 2012. Suppose you bought McCoy stock for $47.00 on 18 July 2012, and sold it immediately after the dividend was paid for $63.32. What was your realised return from holding McCoy?

Question

Quizplus · Accepted Answer

The realised return is calculated by adding the dividend received to the capital gain and then dividing by the initial investment. The capital gain is $63.32 - $47.00 = $16.32. Adding the dividend of $3.20 gives a total gain of $19.52. Dividing this by the initial investment of $47.00 gives a realised return of 41.5%.

McCoy Paid a One-Time Special Dividend of $3