Richard bought a share of stock for 47.50 that paid a dividend of ...

[drink]

Richard bought a share of stock for 47.50 that paid a dividend of .72 and sold one year later for 51.38. What was Richard's dollar profit or loss and holding period return?
 
  A) 0.72, 7.55
  B) 3.88, 8.95
  C) 4.60, 9.68
  D) 3.88, 9.68

Question 2

Ralph bought a share of stock for 31.50 that paid a dividend of .85 and sold six months later for 27.65. What was his dollar profit or loss and holding period return?
 
  A) -3.00, -9.52
  B) -3.85, -12.22
  C) -.85, -2.70
  D) -3.85, -9.52

[brbarasa]

Answer to Question 1

Answer: C
Explanation: C) Profit = Ending Value + Distributions - Original Cost
Profit = 51.38 + 0.72 - 47.50 = 4.60.
HPR = = = 9.68.

Answer to Question 2

Answer: A
Explanation: A) Profit = Ending Value + Distributions - Original Cost
Profit = 27.65 + 0.85 - 31.50 = -3.00.
HPR = = = -9.52.

[drink]

Correct answers!

[brbarasa]

Great! Please up vote