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Calculating rate of return

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Last year Mike bought 100 shares of a common stock at $53 a share. During the year he received dividends of $1.45 a share. The stock is currently selling for $60 per share. What rate of return did Mike earn over the year.

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Solution Summary

The solution describes the steps to calculate rate of return on 100 shares of a common stock.

Solution provided by:
Lokesh Jain, MSc
Education
  • BEng (Hons) , Birla Institute of Technology and Science, India
  • MSc (Hons) , Birla Institute of Technology and Science, India
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