Joe bought a share of stock for $47.50 that paid a dividend of $.72 and sold one year later for $51.38. What was Joe's dollar profit or loss and holding period return?
A) $0.72, 7.55%
B) $3.88, 8.95%
C) $4.60, 9.68%
D) $3.88, 9.68%

Question

Quizplus · Accepted Answer

Joe's dollar profit = (sale price - purchase price) + dividends received = ($51.38 - $47.50) + $0.72 = $4.60
Holding period return = (dollar profit / purchase price) x 100% = ($4.60 / $47.50) x 100% = 9.68%

Therefore, the best choice is C.

Joe Bought a Share of Stock for $47