To Calculate the Return on a Stock That Pays a Year-End

Multiple Choice

To calculate the return on a stock that pays a year-end dividend, an investor should:

A) divide the stock's sale price by its purchase price and subtract 1.
B) add the dividend and sale price, divide by the purchase price and subtract 1.
C) divide the sale price by the purchase price and add the dividend yield.
D) divide all cash flows received by the selling price and subtract 1.