At the beginning of the year, you purchased a share of stock for $35. Over the y

Question

At the beginning of the year, you purchased a share of stock for $35. Over the year the dividends paid on the stock were $2.75 per share.

Calculate the return if the price of the stock at the end of the year is $30. (Round your answer to 2 decimal places. (e.g., 32.16). Use a negative sign to denote a negative return.)

Calculate the return if the price of the stock at the end of the year is $40. (Round your answer to 2 decimal places. (e.g., 32.16). Use a negative sign to denote a negative return.)

Calculate the return if the price of the stock at the end of the year is $30. (Round your answer to 2 decimal places. (e.g., 32.16). Use a negative sign to denote a negative return.)

Calculate the return if the price of the stock at the end of the year is $40. (Round your answer to 2 decimal places. (e.g., 32.16). Use a negative sign to denote a negative return.)

Explanation / Answer

Return=(end price-beginning price+dividends)/beginning price

1.Return=(30-35+2.75)/35=(6.43%)(Negative figure)

2.Return=(40-35+2.75)/35=22.14%(Approx).

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