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15 October, 10:49

Last year Mike bought 100 shares of Dallas Corporation common stock for $35 per share. During the year he received dividends of $1.87 per share. The stock is currently selling for $37.75 per share. What rate of return did Mike earn over the year

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  1. 15 October, 12:45
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    Rate of return is 13.2%

    Explanation:

    Rate of Return is the actual return that an investor receives from an investment in asset during a specific period of time. If the investment is made in the stocks, It includes the dividend received and the price change of the stock.

    Total return Received = Dividend + Price change = $1.87 + ($37.75 - 35) = $4.62

    Rate of Return = Total return During the period / Initial Price of the stock

    Rate of Return = $4.62 / $35 = 0.132 = 13.2%
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Home » Business » Last year Mike bought 100 shares of Dallas Corporation common stock for $35 per share. During the year he received dividends of $1.87 per share. The stock is currently selling for $37.75 per share. What rate of return did Mike earn over the year
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