Ahmet purchased a stock for $45 one year ago. The stock is now worth $65. During the year, the stock paid a dividend of $2.50. What is the total return to Ahmet from owning the stock? (Round your answer to the nearest whole percent.)

Question

Quizplus · Accepted Answer

The total return is calculated by adding the dividend received to the capital gain and then dividing by the initial stock price. Capital gain is $65 - $45 = $20. Total return = ($20 + $2.50) / $45 = 0.50 or 50%.

Ahmet Purchased a Stock for $45 One Year Ago