About a year ago, Nigel Palmer bought some shares in the Equity Partners Mutual Fund. He bought the stock at $25.00 a share, and it now trades at $26.00. Last year the fund paid dividends of 60 cents a share and had capital gains distributions of $2.70 a share.
Using the approximate yield formula, what rate of return did Nigel earn on his investment? Round the answer to two decimal places.
%
Repeat the calculation using a handheld financial calculator. Round the answer to two decimal places.
%