Answered: What is Jane's realized rate of return…

What is Jane's realized rate of return for the year from the stock? Answer as a percentage, 2 decimal places (e.g., 12.34% as 12.34).

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter2: The Domestic And International Financial Marketplace

Section: Chapter Questions

Problem 2P

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Question

Jane purchased 100 shares of Acme Consolidated 1 year ago at $58.80 per share. During the year, Acme paid a dividend of $1.12 per share. Currently, the stock is selling for $52.33 per share. What is Jane's realized rate of return for the year from the stock? Answer as a percentage, 2 decimal places (e.g., 12.34% as 12.34).

Definition Definition Percentage gain or loss from a specific investment over time. The rate of return is the difference between the closing and initial values of an investment divided by the initial value of the investment. The closing value includes any intermediate cash flows such as dividends or interest amounts.

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