Holding Period Return: George Wilson purchased Bright Light Industries common stock for $47.50 on January 31, 2010. The firm paid dividends of $1.10 during the last 12 months. George sold the stock today (January 30, 2011) for $54.00. What is George's holding period return? Round off the nearest 0.01%.

Question

Quizplus · Accepted Answer

The holding period return is calculated as follows:Holding period return = (Ending stock price + Dividends received - Purchase price) / Purchase price= (54.00 + 1.10 - 47.50) / 47.50= 0.1600= 16.00%

Holding Period Return: George Wilson Purchased Bright Light Industries Common