Which share will provide annualised holding period return


Response to the following problem:

You are considering two investment alternatives. The first is a share that pays quarterly dividends of $0.50 per share and is trading at $25 per share; you expect to sell in six months for $27. The second is a share that pays quarterly dividends of $0.60 per share and is trading at $27 per share; you expect to sell in one year for $30.

Which share will provide the better annualised holding period return?

 

 

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Financial Accounting: Which share will provide annualised holding period return
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