Response to the following problem:
Using a Spreadsheet to Calculate Stock Returns:
At the beginning of the year, you purchased a share of stock for $50. Over the year the dividends paid on the stock were $4.50 per share. Calculate the return on a stock if the price of the stock at the end of the year is $40, $48, $50, and $55.
|
Price at Beginning of year
|
Dividends
|
Price at the end of year
|
The Return is
|
|
$50
|
$4.50
|
$40
|
-11.00%
|
|
50
|
4.50
|
48
|
5.00
|
|
50
|
4.50
|
50
|
9.00
|
|
50
|
4.50
|
55
|
19.00
|