Question

Mindy purchased 100 shares of Fly By Wire Training Academy at $75.50 per share one year ago. She has just received a dividend of $2.50 per share and the share is selling at a price of $89.25. What is Mindy's rate of return on Fly By Wire stock over the one-year holding period?

Answer 1

the rate of return will be 21.5231%

Step-by-step explanation:

the return will be

• the increase in the price of the share
• plus the dividends

89.25-75.5=13.75

+ 2.5 dividends

total of 16.25

then we divide this ammount by the investment Made

16.25/75.5=0.215231

because each share are of the same class and receive the same dividends and their increase is also the same the number of shares do not modifies the rate.