What total return did Stuart earn during the three-year

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Problem - Earlier today, Stuart sold 200 shares of stock he owned. He purchased the stock three years ago for $28 per share. Following is a table that shows the market value of the stock at the end of each year and the amount of the dividend that Stuart received during the year:

Year

Market Value (per share)

Dividend (per share)

1

$26

$0.60

2

28

0.60

3

32

0.60

Required -

(a) What total return (yield) did Stuart earn during the three-year period he held the stock?

(b) What return did Stuart earn for each year he held the stock?

Reference no: EM132697353

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