Suppose a stock had an initial price of 82 per share paid a

Suppose a stock had an initial price of $82 per share, paid a dividend of $1.20 per share during the year, and had an ending share price of $90. Compute the percentage total return. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Solution

Return from stock = (Change in Price+Dividend)/ Initial Price

Initial Price = $ 82

Ending Price = $ 90

Change in Price = $90-$82 = $8

Dividend = 1.20

Return = (8+1.2)/82*100 = 11.219%