Suppose a stock had an initial price of 80 per share paid a

Suppose a stock had an initial price of $80 per share, paid a dividend of $1.45 per share during the year, and had an ending share price of $85. Compute the percentage total return.

Solution

% total return=(End price-Beginning price+Dividends)/Beginning price

=(85-80+1.45)/80

which is equal to

=8.0625%