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Calculate the stock return for 1 year

begin stock price : 43.43
end stock price: 59.84
forward and dividend yield : 1.84 (3.07%)

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User Olitee
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1 Answer

7 votes

Final answer:

To calculate the annual stock return, we add the capital gain of $16.41 to the dividend yield of $1.33, resulting in a total return of $17.74 from an initial investment of $43.43. The percentage return is 40.84%.

Step-by-step explanation:

To calculate the stock return for one year, we need to consider both the capital gains and any dividends received. The capital gain is found by subtracting the beginning stock price from the end stock price. In this case, the beginning price is $43.43, and the ending price is $59.84. So, the capital gain is $59.84 - $43.43 = $16.41. Additionally, there is a forward and dividend yield of 1.84 (3.07%). For a $43.43 stock, this equals $1.33 (43.43 * 0.0307).

The total return would be the sum of the capital gain and dividend yield, which is $16.41 + $1.33 = $17.74. Therefore, the annual stock return is ($17.74 / $43.43) * 100 = 40.84% for one year.

answered
User Ramez
by
8.2k points
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