Jill purchased a share one year ago for $13.28. The share is now worth $14.49, and the total return to Jill for owning the share was 25.4 per cent. The dollar amount of dividends that she received for owning the share during the year is (expressed in dollars to the nearest cent; don't use $sign or commas eg 50 cents is 0.50)
Answer:
| Let the Dividend of Share be "x". | |||||||||
| Return on Share = (Capital Gain + Dividend / Purchase Price) | |||||||||
| Return on Share = ((Current Price - Purchase Price) + Dividend / Purchase Price) | |||||||||
| 25.40% = (($14.49 - $13.28) + x / $13.28) | |||||||||
| 0.254 = ($1.21 + x) / $13.28 | |||||||||
| 0.254 * $13.28 = $1.21 + x | |||||||||
| $3.37 = $1.21 + x | |||||||||
| x = $3.37 - $1.21 | |||||||||
| x = $2.16 | |||||||||
| So, Dividend = 2.16 | |||||||||
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