Ten years ago you invested $1,000 for 10 shares of Providien, Inc. common stock. You sold the shares recently for $2,000. While you owned the stock it paid $10.08 per share in annual dividends. What was your rate of return on Providien stock?
Total dividends per year = 10 shares ×$10.08 per share = $100.80. Rate of return = 15.00%, as shown below.