An investor purchased a stock one year ago for $83.00. It paid an annual cash dividend of $3.76 and is now worth $96.83. What total return did the investor earn? Would the investor have experienced a capital gain? Explain

An investor purchased a stock one year ago for $83.00. It paid an annual cash dividend of $3.76 and is now worth $96.83. What total return did the investor earn? Would the investor have experienced a capital gain? Explain

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

An investor purchased a stock one year ago for

$83.00.

It paid an annual cash dividend of

$3.76

and is now worth

$96.83.

What total return did the investor earn? Would the investor have experienced a capital gain? Explain

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