Use the table for the question(s)below.
Consider the following realised annual returns:

-McCoy paid a one-time special dividend of $3.20 on 18 October 2016. Suppose you bought McCoy stock for $47.00 on 18 July 2016, and sold it immediately after the dividend was paid for $63.32. What was your realised return from holding McCoy stock?
A)41.5%
B)6.8%
C)34.7%
D)4.15%

Question

Use the table for the question(s)below.
Consider the following realised annual returns:
 
-McCoy paid a one-time special dividend of $3.20 on 18 October 2016. Suppose you bought McCoy stock for $47.00 on 18 July 2016, and sold it immediately after the dividend was paid for $63.32. What was your realised return from holding McCoy stock?
A)41.5% 
B)6.8% 
C)34.7% 
D)4.15%

Quizplus · Accepted Answer

The realized return from holding McCoy stock can be calculated by considering both the dividend received and the capital gain from selling the stock. The total return is the sum of the dividend received ($3.20) and the capital gain ($63.32 - $47.00 = $16.32), which equals $19.52. The initial investment was $47.00, so the realized return is ($19.52 / $47.00) * 100 = 41.5%.

Use the Table for the Question(s)below