Books Brothers stock was priced at $15 per share two years ago. The stock sold for $13 last year and now it sells for $18. What was the total return for owning Books Brothers stock during the most recent year? Assume that no dividends were paid and round to the nearest percent.

Question

Quizplus · Accepted Answer

The total return for owning a stock is calculated as follows:
Total Return = (Current Price - Purchase Price) / Purchase Price x 100%
Using this formula, we can calculate the total return for owning Books Brothers stock during the most recent year as:
Total Return = ($18 - $13) / $13 x 100% = 38.46%
Rounding to the nearest percent, the total return is 38%, which is option D.

Books Brothers Stock Was Priced at $15 Per Share Two