McCoy paid a one-time special dividend of $3.20 on October 18,2010.Suppose you bought McCoy stock for $47.00 on July 18,2010,and sold it immediately after the dividend was paid for $63.32.What was your realized return from holding McCoy?

Question

Quizplus · Accepted Answer

To calculate the realized return, we need to consider both the capital gain and the dividend received. 
Capital gain = selling price - buying price = $63.32 - $47 = $16.32 
Dividend = $3.20 
Total return = capital gain + dividend = $16.32 + $3.20 = $19.52 
Realized return = total return / buying price = $19.52 / $47 = 0.415 (rounded to three decimal places) 
Realized return as a percentage = 41.5% (rounded to one decimal place)

Therefore, the answer is D.

McCoy Paid a One-Time Special Dividend of $3