if the share price of emaline, a new orleans-based shipping firm, rises from $15 to $20 over a one-year period, what is the rate of return to the shareholder given the company paid a dividend of $1.5 per share a. 33% b. 25% c. 43% d. 35% group of answer choices a b c d

Respuesta :

The share price of Emaline , The rate of return when company paid dividend of $1.5 per share = 32.5%

A rate of return( RoR) is the net rise or loss of an investment over a defined time period, expressed as a chance of the investment's original cost.  When figuring the rate of return, you're deciding the chance difference from the beginning of the period until the end.

Evaluating the Return :

Given:

P0 = $ 15, P1 = $ 20 , Dividend = $ 1.5

Return (when company paid dividends) = (P1 - P0) + Dividend ÷ P1

                                = (20 - 15 )+1.5  ÷ 20

                                        = 5 +1.5  ÷ 20

                                        = 6.5 ÷ 20

                                     = 0.325 × 100

                                           = 32.5 %

How Dividends Are Paid Out :

A dividend is the allotment of some of a company's earnings to a order of its shareholders. Dividends are generally paid in the form of a dividend check. still, they may also be paid in fresh shares of stock.

Share Price :

A share price – or a stock price – is the measure it would bring to buy one share in a company. The price of a share isn't set up, but fluctuates according to market conditions. It'll probably raise if the company is perceived to be doing well, or fall if the company is not meeting expectations.A share price is the price of a single share of a number of marketable equity shares of a company. In non professional's terms, the stock price is the loftiest measure someone is ready to compensate for the stock,

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