At the end of fiscal year 2011 Crane Industries Incs stock p

At the end of fiscal year 2011, Crane Industries, Inc.\'s stock price was $30.75. A year later it was $34.88. Per share dividends over the year were $0.55, while earnings per share were $1.33. What rate of return did the common stock owners earn in fiscal year 2012?

1.79%

4.33%

13.43%

15.22%

17.76%

None of the above.

Solution

Correct option is > 15.22%

.

Rate of return = (Stock price 2012 - Stock price at 2011 + Dividend)/ Stock price at 2011

Rate of return = (34.88-30.75+0.55)/30.75

Rate of return = 15.22%