Question

McCoy paid a one-time special dividend of $3.00 on October 18, 2010. Suppose you bought McCoy stock for $46 on July 18, 2010, and sold it immediately after the dividend was paid for $63.16. What was your realized retum from holding McCoy? O A. 43.83% OB. 4.38% O C. 35.06% OD. 6.57%

Answer 1

Return = ((Selling price - purchase price)+dividend)/purchase price =((63.16-46)+3)/46 = 20.16/46 = 0.43826 or 43.83% - Option A