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You purchased 100 shares of Granny Smith stock one year ago. You purchased your stock at $157.21 per share. You earned $232 in dividends this year. If you sold your all your shares today at the current market value of $217.58 per share, what would you rate of return be for the year

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anthougo

The rate of return for the year from the purchase of 100 shares of Granny Smith stock a year ago is 39.88%.

What is the rate of return?

An investment's rate of return is the net gain over the specified period.

The return or net gain (Revenue - Cost) is usually expressed as a percentage of the investment's initial cost.

Data and Calculations:

Numer of shares purchased = 100

Cost price per share = $157.21

Total cost of purchase = $15,721 ($157.21 x 100)

Dividends for the year = $232

Current price per share = $217.58

Total returns or net gain = $6,269  ($217.58 - $157.21 x 100 + $232)

Rate of return = 39.88% ($6,269/$15,721 x 100)

Thus, the rate of return for the year from the purchase of 100 shares of Granny Smith stock a year ago is 39.88%.

Learn more about the rate of return at https://brainly.com/question/6354635

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