You own shares in Yahoo that were purchased at a price of $ 24 per share. Microsoft has offered to purchase Yahoo and buy your shares at a price of $ 34 per share. What will be your return if you tender your shares to Microsoft and the deal is completed

Return = 41.67%

Explanation

The return on a share is the sum of e capital gains and the dividend received all expressed as a percentage of the of the amount invested.

In the absence of the payment of dividend, the return

Return = capital gain / Price of share * 100

Capital gain = Price of shares now - cost of shares

Capital gain = 34 - 24 = 10

Return = 10/24 * 100 = 41.66666667

Return (%) = 41.67%