What was the stock's rate of return from dividend income during the year on these financial accounting question? Gwen purchased a stock one year ago for $25, and itis now worth $31. The stock paid a dividend of $1.50during the year. What was the stock's rate of returnfrom dividend income during the year?A. 6%B. 15%C. 24%D. 26%

Step 1: Define Returns on a StockThe total returns on a stock can be categorized into capital gains…

Answered: Gwen purchased a stock one year ago for…

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter7: Stocks (equity) - Characterstics And Valuation

Section: Chapter Questions

Problem 2PROB

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Gwen purchased a stock one year ago for $25, and it is now worth $31. The stock paid a dividend of $1.50 during the year. What was the stock's rate of return from dividend income during the year? A. 6% B. 15% C. 24% D. 26%