Question

Warren Barefoot bought a share in Wonka Industries in January 2013 for $25 and sells this share again in December 2017 for $60. In the five years that he held the share, he received the following dividends: $0.91 (2013), $1.03 (2014). $1.27 (2015). $1.99 (2016), and $1.75 (2017). Based on this information, we can calculate that the Holding Period of Return for this company was (rounded to two digits):

Answer 1

Solution in Purchase price of share $25 selling Price of share $60 Total to 2017 Dividend Received in year 2013 $0.91 + $ 1.03 + $1,27+ $1.99 + $1.75 $ 6.95 Holding Period Return Totul Dividend Received + Selling Price Purchase Price Purchase price $6.95 + $60 – $25 $25 = $ 41.95 $25

1.678 07 167.80 % Holding Period Return was 167.80 . (approx) .