Answer:
Total Stock Return: [tex]\frac{(P_{1} - P_{0})+D }{P_{0} }[/tex]
[tex]P_{0} = Initial Stock Price\\P_{1} = Ending Stock Price(Period 1)\\D = Dividends[/tex]
38.82 - 38.40 = 0.42
0.42 + 1.55 = 1.97
1.97/38.40 = 0.0513020833333333
Step by Step Explanation:
The formula for the total stock return is the appreciation in the price plus any dividends paid, divided by the original price of the stock. The income sources from a stock is dividends and its increase in value. The first portion of the numerator of the total stock return formula looks at how much the value has increased (P1 - P0). The denominator of the formula to calculate a stock's total return is the original price of the stock which is used due to being the original amount invested.
