Please verify the solution to the practice problem below. I calculated it long hand (algebra).

Please show all work. I know that there must be easier/faster methods to calculate this. If so, please explain and show data if using Excel.

Question:

You own a stock trading on 1/1 (beginning) at $40 and on 12/31 (ending) at $43.50. What annual dividend do you need to earn an annual rate of 10%?

My solution:

R = (End Price - Beg Price / Beg Price) + (Income / Beg Price)

10% = ((43.5-40)/40))+(X/40)

.10 = 3.5/40+(X/40)

.10 = .0875+(X/40)

.10-.0875=X/40

0.0125=X/40

0.0125*40 = X

.50 = X

Annual Dividend = $0.50