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28 February, 23:16

Nico bought 100 shares of cisco systems stock for $30.00 per share on january 1, 2013. he received a dividend of $2.00 per share at the end of 2013 and $3.00 per share at the end of 2014. at the end of 2015, nico collected a dividend of $4.00 per share and sold his stock for $33.00 per share. what was nico's realized holding period return?

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  1. 1 March, 00:17
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    Jan. 1, 2013:

    Initial investment = (100 shares) * ($30/share) = $3,000.

    End of 2013:

    Dividend collected = ($2/share) * (100 shares) = $200

    End of 2014:

    Dividend collected = ($3/share) * (100 shares) = $300

    End of 2015:

    Dividend collected = ($4/share) * (100 shares) = $400

    Returns::

    From sales of 100 shares = ($33/share) * (100 shares) = $3,300

    From dividends = 200 + 300 + 400 = $900

    Total returns = 3,300 + 900 = $4,200

    Realized returns = Total returns - Initial inestment

    = 4200 - 3000

    = $1,200

    Answer: $1,200
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