Stock rate of return from capital appreciation, Accounting Basics

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Stock rate of return from capital appreciation

Problem:

Francis purchased a stock one year ago for $20, and it is now worth $24. The stock paid a dividend of $3 during the year. .

Required:

Question: What was the stock's rate of return from capital appreciation during the year?

Note: Explain all calculation and formulas.

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Accounting Basics: Stock rate of return from capital appreciation

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Accounting Basics: Stock rate of return from capital appreciation

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