Question

A couple bought some stock for $30 per share that pays an annual dividend of $0.90 per share. After 1 year the price of the stock was $33. Find the simple interest rate on the growth of their investment.​

Answer 1

The initial price of the stock is $30.

The growth of their investment would be : 33/30=1.1 = 1.1-1=.1, or 10% growth on their stock.

If you count the dividend as growth, then you have: 33+1.8/30=1.16, or 16% growth.

Hence, the answer is 16% growth.

Answer 2

Answer:

Step-by-step explanation:

16%