One year ago Regina purchased 1050 worth of Elite Electricia

One year ago, Regina purchased $1,050 worth of Elite Electrician\'s common stock for $42 per share. During the year, Regina received two dividend payments, each equal to $0.05 per share. The current market value of the stock is $44 per share. What yield did Regina earn on her investment during the year?

Solution

Hi,

Please find the detailed answer as follows:

Return = (Dividend Payments + Closing Price - Opening Price)/Opening Price*100 = (2*.50 + 44 - 42)/42*100 = 7.14%

Answer is 7.14%

Thanks.