Purchased 100 shares of my airlines stock for $12 per share. The next year the stock paid a dividend of $1 per share. I buy 100 additional shares for $11 per share. At the end of the second year I sell all 200 shares for $20 per share. What was the weighted return on my airlines stock?

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter5: The Cost Of Money (interest Rates)
Section: Chapter Questions
Problem 5PROB
icon
Related questions
Question

Purchased 100 shares of my airlines stock for $12 per share. The next year the stock paid a dividend of $1 per share. I buy 100 additional shares for $11 per share. At the end of the second year I sell all 200 shares for $20 per share. What was the weighted return on my airlines stock?

Expert Solution
Introduction

The formula for the total stock return is the appreciation in the price plus any dividends paid, divided by the original price of the stock. The income sources from a stock is dividends and its increase in value. 

trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Knowledge Booster
Investment in Stocks
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
EBK CFIN
EBK CFIN
Finance
ISBN:
9781337671743
Author:
BESLEY
Publisher:
CENGAGE LEARNING - CONSIGNMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT