What would the rate of return for a stock that increased in value from $60 per share to $63 per share and paid a $3.00 dividend?

Question

Quizplus · Accepted Answer

The initial value of the stock was $60 per share. With the increase to $63 per share, the increase in value is $63-$60 = $3. Since a $3.00 dividend was also paid, the total return is $3.00 (dividend) + $3.00 (increase in value) = $6.00. The rate of return is calculated by dividing the total return by the initial value and then multiplying by 100 to express it as a percentage, so the rate of return is:

($6.00/$60) x 100 = 10%

Therefore, the correct answer is choice C.

What Would the Rate of Return for a Stock That