You purchase 1,000 shares of Spears Grinders Inc. stock for $45 per share. A year later, the

Question:

You purchase 1,000 shares of Spears Grinders Inc. stock for $45 per share. A year later, the stock pays a of $1.25 per share and it sells for $49.
a. Calculate your total dollar return.
b. Calculate your total percentage return.
c. Do the answers to parts (a) and (b) depend on whether you sell the stock after one year or continue to hold it?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...