FIN 571 Week 1 Connect Problems Solutions (2017 version) Homework | Page 3

Suppose a stock had an initial price of $ 72 per share, paid a dividend of $ 2.60 per share during the year, and had an ending share price of $ 84. Compute the percentage total return.
You’ ve observed the following returns on SkyNet Data Corporation’ s stock over the past five years: 10 percent, – 10 percent, 17 percent, 22 percent, and 10 percent. Suppose the average inflation rate over this period was 1.5 percent, and the average Tbill rate over the period was 3 percent.