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Problem 3. [4 pts]. Using the data in the table below, calculate the return for investing in Synovus Financial Corp. stock from January 1 to December 31. (Show your calculations) Date Jan-1 Feb-5 May-14 Aug-13 Nov-12 Dec-31 Price Dividend $30.88 $30.67 $19.94 $22.83 $29.07 $31.99 $0.15 $0.15 $0.20 $0.10

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Answer #1

The return that is earned by investing in Synovus Financial is :

The price at which the stock is bought is $30.88, the price on the 31st Dec is $31.99

The dividend payments received is = $0.15 + $0.15 + $0.20 + $010

= $0.60

So, the total return is (31.99 - 30.88 + 0.60) = $ 1.71

the percentage return is $1.71/ 30.88 * 100 = 5.54%

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