Investment in 10,000 common shares of a company for 1 year earned 15.5%. Investor received $2,500 dividend just prior to the sale of the shares at $24 per. The price that the investor paid for each share one year earlier was closest to blank.
Is the 15.5% pure price appreciation, or total return?
P0 = ($24 + $2,500/10,000) / 1.155.
Do you have the right answer? I calculated it as:
2500/10 000 = 0.25 dividend per share
(24+0.25)/1.155 = 21
My brain must have stopped working there for a minute.
I’ve made the correction.
21% , is it?