Problem:
Nico bought 500 shares of a stock for $24.00 per share on January1, 2013. He received a dividend of $2.5 per share at the end of 2013 and $4.00 per share at the end of 2014. At the end of 2015, Nico collected a dividend of $3.00 per share and sold his stock for $20.00 per share.
Required:
Question: What is Nico's realized total rate of return?
• -12.5%
• 20.75
• 12.5%
• -20.7%
Note: Please provide through step by step calculations.