Suppose a stock had an initial price of $94 per share, paid a dividend of $2.50 per share during the year, and had an ending share price of $76.50.
To calculate the total return on the stock, you need to consider both the change in the price of the stock and the dividend paid during the year.
1. Calculate the change in the stock price:
The initial share price is $94, and the ending share price is $76.50. To find the change, subtract the ending price from the initial price:
Change in stock price = $76.50 - $94 = -$17.50
2. Calculate the total dividend received:
The dividend paid during the year is $2.50 per share. To calculate the total dividend, multiply the dividend per share by the number of shares:
Total dividend = $2.50/share * Number of shares
3. Calculate the total return:
The total return is the change in stock price plus the total dividend received:
Total return = Change in stock price + Total dividend
By substituting the values, you can calculate the total return on the stock. However, the number of shares is missing in the given information, so you need the number of shares to calculate the total dividend and the total return.