Question

The Busby Corporation had a share price at the start of the year of $27.00, paid a dividend of $0.51 at the end of the year,

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Answer #1

The return is computed as shown below:

= (Price at end - Price at start + dividend) / Price at start

= ($ 30 - $ 27 + $ 0.51) / $ 27

= 13.00%

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