Question

John purchased 100 shares of Soft Drink Co. stock at a price of $71.81 three months ago. He sold all stocks today for $70.80. During that period the stock paid dividends of $2.85 per share. What is John's effective annual rate? Round the answers to two decimal places in percentage form. (Write the percentage sign in the "units" box)

Answer 1

	Per Share	Qty	Total
Purchase Price	$71.81	100	$7,181.00
Total Cost			$7,181.00
Dividend Received	$2.85	100	$285.00
Sale Price	$70.80	100	$7,080.00
Total Benefits			$7,365.00
Total Holding Period	3 Months		0.25 Year
Absolute Return over holding period			$184.00
% Return over holding period			2.56%
Effective Annual Rate			10.65%