Answer:
C) 12.51%
Explanation:
Initial stock price = $59
Selling price = $66
Dividends paid = $0.38
The total return on the investment is the the sum of the dividend yield and the capital gains yield on the investment:
[tex]R= DY +CGY\\R=\frac{dividends}{initial\ price}+ \frac{final\ price-initial\ price}{initial\ price} \\R=\frac{0.38}{59}+ \frac{66-59}{59}\\R=0.1251 = 12.51\%[/tex]
The return on the investment is 12.51%
