You purchased 100 shares of a stock at the beginning of the year for $43.20 per share. The share price at the end of the year is $46.10 and the stock paid an annual dividend of $1.10 per share. What was your total percentage return for the year?
A) 7.16%
B) 7.73%
C) 8.68%
D) 9.26%
E) 10.39%

Question

Quizplus · Accepted Answer

The total return includes both the capital gain and the dividend. The capital gain is ($46.10 - $43.20) = $2.90 per share. The dividend is $1.10 per share. Total return per share is $2.90 + $1.10 = $4.00. The percentage return is ($4.00 / $43.20) * 100% = 9.26%.

You Purchased 100 Shares of a Stock at the Beginning