ABC Company's stock had an initial price of $50 per share and paid a dividend of $4 per share during the year. Calculate the total rate of return for ABC Company's stock assuming an ending share price of $45.
A) 8%
B) -2%
C) -10%
D) 2%

Question

Quizplus · Accepted Answer

The total rate of return is calculated as (Ending Price - Initial Price + Dividend) / Initial Price. Here, it is ($45 - $50 + $4) / $50 = -$1 / $50 = -0.02 or -2%.

ABC Company's Stock Had an Initial Price of $50 Per