At the end of 2013,Crane Industries Inc.'s stock price was $30.75.A year later it was $34.88.Per share dividends over the year were $0.55,while earnings per share were $1.33.What rate of return did the common stockholders earn in fiscal year 2014?
A) 1.79%
B) 4.33%
C) 13.43%
D) 15.22%
E) 17.76%

Question

Quizplus · Accepted Answer

The rate of return for the stockholders can be calculated by adding the dividend received to the increase in stock price, then dividing by the initial stock price. The calculation is as follows: ((34.88 - 30.75) + 0.55) / 30.75 = 4.68 / 30.75 = 0.1522 or 15.22%.

At the End of 2013,Crane Industries Inc