Question

George Wilson purchased Bright Light Industries common stock for $47.50 on January 31, 2016. The firm paid dividends of $1.10 during the last 12 months. George sold the stock today (January 30, 2017) for $54.00. What is George’s holding period return?

Answer 1

George’s holding period return is 16%.

Step-by-step explanation:

holding period return = (End value-Beginning value + Dividends)/Beginning value

= (54 - 47.5 + 1.1)/47.5

= 16%

Therefore, George’s holding period return is 16%.