Question

You just purchased a share of SPCC for $98. You expect to receive a dividend of...

You just purchased a share of SPCC for $98. You expect to receive a dividend of $6 in one year. If you expect the price after the dividend is paid to be $110, what total return will you have earned over the year? The total return you will have earned over the year is _______________________ %. (Round to two decimal places.)

A.24.92%

B.18.37%

C.17.01%

D.19.77%

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Answer #1

Total return=(End price-Beginning price+Dividends)/Beginning price

=(110-98+6)/98

which is equal to

=18.37%(Approx).

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