You purchase a stock at a price of $73, and a year later the price increases to $85. You also received a dividend of $2.50. Calculate the rate of return.
gain = (85-73) + 2.5 = 14.5
rate of return = 14.5/73 = .19863 or 19.863 %
rate of return = 14.5/73 = .19863 or 19.863 %