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1 December, 03:52

Mindy purchased 100 shares of Fly By Wire Training Academy at $75.50 per share one year ago. She has just received a dividend of $2.50 per share and the share is selling at a price of $89.25. What is Mindy's rate of return on Fly By Wire stock over the one-year holding period?

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  1. 1 December, 06:27
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    the rate of return will be 21.5231%

    Explanation:

    the return will be

    the increase in the price of the share plus the dividends

    89.25-75.5=13.75

    + 2.5 dividends

    total of 16.25

    then we divide this ammount by the investment Made

    16.25/75.5=0.215231

    because each share are of the same class and receive the same dividends and their increase is also the same the number of shares do not modifies the rate.
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