A couple bought some stock for $30 per share that pays an annual dividend of $1.80 per share. After 2 years the price of the stock was $33. (a) What is the return on investment? % (b) Find the simple interest rate on the growth of their investment. % Enter an exact number.
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The total return on investment includes both the dividends received and the capital gain (or loss) on the stock. The formula for total return is: \[ \text{Total Return} = \text{Dividends Received} + \text{Capital Gain} \] Show more…
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