John purchased 100 shares of Black Forest Inc. stock of at a price of $150.68 three months ago. He sold all stocks today for $158.29. During this period the stock paid dividends of $4.69 per share. What is John's annualized holding period return (annual percentage rate) ?

= 32.7%

Explanation:

Return on a stock is the sum of the dividends and the capital gains.

Capital gains = Sales value of stock - Cost of investment

= (158.29 - 150.68) * 100

= 761

Dividends = 4.69 * 100

=469

Cost of investment = 150.68 * 100

Return in %

= Total return / cost of stocks * 100

= (761 + 469) / (150.68 * 100) * 100

=8.2% for 3 months

Annualized return

= (8.2 %/3) * 12

= 32.7%

Annualized return = 32.7%