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A stock purchased at $50 at the beginning of the year paid $10 in dividends and...

A stock purchased at $50 at the beginning of the year paid $10 in dividends and was sold for a net price of $52 at the end of the year. The total annual return is

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Answer #1

Total Annual Return (in Dollar)

Total Annual Return (in Dollar) = (Selling price per share – Purchaser Price per share) + Dividend Received per share

= [$52.00 per share - $50.00 per share] + $10.00 per share

= $2.00 per share + $10.00 per share

= $12.00 per share

Total Annual Return (in Percentage)

Total Annual Return (in Percentage) = [Total Annual Return (in Dollar) / Purchase price per share] x 100

= [$12.00 per share / $50.00 per share] x 100

= 24.00%

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