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Richard Bought a Share of Stock for $47

question 79

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Richard bought a share of stock for $47.50 that paid a dividend of $.72 and sold one year later for $51.38.What was Richard's dollar profit or loss and holding period return?

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Definitions:

Incremental Cash Flow

The additional cash flow from a company's activities or projects, specifically distinguishing between the cash flows with and without the project.

Taxes

Compulsory financial charges or levies imposed by a government on individuals and organizations to fund public expenditures.

Erosion

The portion of cash flows of a new project that come at the expense of a firm’s existing operations.

Incremental

Refers to the additional changes in costs or revenues that result from a business decision.

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