Assume That a Stock Is Priced at $50 and Pays

Multiple Choice

Assume that a stock is priced at $50 and pays an annual dividend of $2 per share. An investor purchases the stock, using only personal funds and not borrowing from the brokerage firm. If, after one year, the stock is sold at a price of $65.25 per share, the return on the stock is

A) 26.5 percent.
B) 28.5 percent.
C) 30.5 percent.
D) 34.5 percent.