Lee purchased a stock one year ago for 25 The stock is now w
Lee purchased a stock one year ago for $25. The stock is now worth $32, and the total return to Lee for owning the stock was 0.39. What is the dollar amount of dividends that he received for owning the stock during the year?
Solution
Total Return = (Closing Price - Opening Price + Dividends)/Opening Price
.39 = (32 - 25 + Dividends)/25
Dividends = 9.75 - 7 = 1.392
Answer is 1.392
