Becky Harie bought GBX Corporation stock for $24.38 a share.After six months, she received $2.25 in dividends and the market value the stock was $25.01 a share.If Becky decided to sell the stock today, what would be her shareholder return?

Question

Quizplus · Accepted Answer

Becky's initial investment per share was $24.38. After six months, she received $2.25 in dividends, which brings her total return to $24.38 + $2.25 = $26.63.

The market value of the stock is now $25.01, which means Becky would have lost money if she sold the stock at the current market price.

To calculate Becky's shareholder return, we would use the following formula:

Shareholder Return = (End Price + Dividends - Initial Price) / Initial Price x 100%

Plugging in the numbers, we get:

Shareholder Return = ($25.01 + $2.25 - $24.38) / $24.38 x 100% = 23.63%

Therefore, Becky's shareholder return would be 23.63%, which is closest to answer D (23.63 percent).

Becky Harie Bought GBX Corporation Stock for $24