Mindy purchased 100 shares of Fly By Wire Training Academy at $75.50 per share one year ago. She has just received a dividend of $2.50 per share and the share is selling at a price of $89.25. If Mindy sold it at this price, what was her rate of return on Fly By Wire stock over the one-year holding period?

Question

Quizplus · Accepted Answer

The rate of return is calculated as [(Ending Price - Initial Price + Dividend) / Initial Price] * 100. Here, it is [($89.25 - $75.50 + $2.50) / $75.50] * 100 = 21.52%.

Mindy Purchased 100 Shares of Fly by Wire Training Academy