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Capitalization rate /total return

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Given the following characteristics of a portfolio of large-cap stocks, calculate the capitalization rate over a one-year period, t0 to t1:

P0 $125,000
P1 $132,000
D0 $3,750
D1 $4,225

Calculate the total return. Please show calculations.

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Solution Summary

The solution explains how to calculate the capitalization rate and total return

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Capitalization rate = D1/P0 + g
D1 = 4,225
P0=125,000
g = growth rate in ...

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