Answer:
return in dollars: 2.38
rate of retrun: 6.35%
Explanation:
there are two returns:
one is the dividends cash flow of $ 0.6
and the other is the capital gain:
current market price - cost: 39.28 - 37.5 = $ 1.78
total return in dollars: $ 2.38
[tex]\frac{return}{cost} = $Rate of Return[/tex]
2.38/37.50 = 0,06346667 = 6.35%
