Question: Earlier today, Stuart sold 200 shares of stock he owned. He purchased the stock three years ago for $28 per share. Following is a table that shows the market value of the stock at the end of each year and the amount of the dividend that Stuart received during the year:
|
YEAR
|
MARKET VALUE
(PER SHARE)
|
DIVIDEND
(PER SHARE)
|
|
1
|
$26
|
$0.60
|
|
2
|
28
|
0.60
|
|
3
|
32
|
0.60
|
(a) What total return (yield) did Stuart earn during the three-year period he held the stock?
(b) What return did Stuart earn for each year he held the stock?