Math Problem Statement
Suppose a stock had an initial price of $66 per share, paid a dividend of $1.70 per share during the year, and had an ending share price of $78. Compute the percentage total return. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Solution
The formula for calculating the percentage total return on a stock is:
Step 1: Substitute the given values into the formula:
- Beginning Price = $66
- Ending Price = $78
- Dividend = $1.70
Step 2: Perform the calculation:
Final Answer:
The percentage total return is 20.76%.
Let me know if you'd like further details, or if you have any other questions!
Related Questions:
- How do dividends affect total return in stock investments?
- What is the difference between price return and total return?
- How do you calculate annualized return?
- What is the impact of capital gains on total return?
- How does inflation affect the real return on a stock?
Tip: When calculating returns over multiple periods, consider using the compound annual growth rate (CAGR) for a more accurate picture of long-term performance.
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Math Problem Analysis
Mathematical Concepts
Percentage Calculations
Financial Mathematics
Total Return
Formulas
Total Return = ((Ending Price - Beginning Price + Dividend) / Beginning Price) * 100
Theorems
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Suitable Grade Level
Grades 10-12
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