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You purchased 100 shares of Granny Smith stock one year ago. You purchased your stock at $157.21 per share. You earned $232 in dividends this year. If you sold your all your shares today at the current market value of $217.58 per share, what would you rate of return be for the year? Calculate the Annual Rate of Return using the formula given to you in the reading assignment.

Respuesta :

Answer:

%40

Step-by-step explanation:

The annual rate of return on the  Granny Smith stock purchased is 39.88%.

What is the annual rate of return?

The annual rate of return is the total return earned when a stock is purchased. It is the sum of the dividend yield and the price appreciation of the stock.

Dividend yield = dividend per share / purchase price

Dividend per share = 232 / 100 = 2.32

Dividend yield = 2.32 / 157.21 = 0.0148 = 1.48%

Price appreciation = (217.58  / 157.21) - 1 = 38.40%

The annual rate of return = 38.40 + 1..48  = 39.88%

To learn more about dividend yield, please check: https://brainly.com/question/27342287

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