If the price of a financial asset is $100 at the beginning of the period, pays a $5 dividend, and earns a 10 percent return over the period, what is the price at the end of the period?

Question

Quizplus · Accepted Answer

The price of the financial asset at the end of the period can be calculated using the formula: 
Price at end of period = Price at beginning of period + Dividend + Return on investment 
P = 100 + 5 + 0.10(100) 
P = 105

If the Price of a Financial Asset Is $100 at the Beginning