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Suppose a stock had an initial price of $80 per share, paid a dividend of $1.75...

Suppose a stock had an initial price of $80 per share, paid a dividend of $1.75 per share during the year, and had an ending share price of $98. Compute the percentage total return.

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Answer #1

The percentage total return is computed as shown below:

= ( Ending share price - initial price + dividend paid ) / initial price

= ( $ 98 - $ 80 + $ 1.75 ) / $ 80

= 24.69% Approximately

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