Alvin purchases 1,500 shares of a stock for $55 per share. The share earns a $5 dividend in one year. At the end of the first year, the stock price is $63.75 per share. What is the rate of return on the stock after one year?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter2: The Domestic And International Financial Marketplace
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Alvin purchase 1,500 shares of a stock for solving general accounting question

Alvin purchases 1,500 shares of a stock
for $55 per share. The share earns a $5 dividend
in one year. At the end of the first year, the stock
price is $63.75 per share. What is the rate of
return on the stock after one year?
Transcribed Image Text:Alvin purchases 1,500 shares of a stock for $55 per share. The share earns a $5 dividend in one year. At the end of the first year, the stock price is $63.75 per share. What is the rate of return on the stock after one year?
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