At the beginning of the year, you buy a share of IBM stock for $120. If during

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At the beginning of the year, you buy a share of IBM stock for $120. If during the year you receive a dividend of $2.50, and IBM stock is selling for $130 at the end of year, what was your rate of return from investing in the stock?

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...
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Money, Banking, and the Financial System

ISBN: 978-0134524061

3rd edition

Authors: R. Glenn Hubbard, Anthony Patrick O'Brien

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