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 .