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17 August, 02:14

Snoke Inc's current price is $100 and the price is expected to rise to $110 in one year. The dividends are paid annually and the next dividend will be $6.00 per share. What is the expected stock return?

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  1. 17 August, 02:20
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    Expected stock Return = 16%

    Explanation:

    The return of a stock is calculated by subtracting ending stock price to ending stock price and add adding and income distributions made during the period and divide by the stock price at beginning

    Current stock price = $100

    Expected stock price = $110

    Dividends = $6

    So in Snoke Inc's the only income distributions are dividends

    Return = Ending stock price - Current stock price + dividends/Current stock price

    =110-100+6/100

    =0.16/16%
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