What is the rate of return to an investor in the stock of Bajo Inc. if the current dividend of $0.80 is not expected to change in the foreseeable future? The current price of Bajo is $13.25.
A) 6.04%
B) 8.0%
C) 24.15%
D) 11.06%

Question

Quizplus · Accepted Answer

The rate of return can be calculated using the formula: Dividend / Current Price. Here, it is $0.80 / $13.25 = 0.0604 or 6.04%.

What Is the Rate of Return to an Investor in the Stock