Answer:
The ending price on the stock = $30.8
Explanation:
Holding period return on a stock = 28%
Beginning price = $25
Cash dividend = $1.2
The ending price on the stock = (Holding period return*Beginning price) - Cash dividend + Beginning price
The ending price on the stock = (0.28*$25) - $1.2 + $25
The ending price on the stock = $7 - $1.2 + $25
The ending price on the stock = $30.8
Answer: $30.8
Explanation:
From the question, we are informed that the holding period return on a stock was 28%, its beginning price was $25 and its cash dividend was $1.2.
The ending price will be calculated as:
= (28% × $25) - $1.2 + $25
= (0.28 × $25) - $1.2 + $25
= $7 - $1.2 + $25
= $30.8
