Respuesta :
We can use the following formula to compute the periodic rate of return:
periodic rate of return = periodic dividend / current price
In this question, the quarterly dividend is 1, and the price is 45, so the quarterly rate of return is:
quarterly rate of return = 1 / 45
quarterly rate of return = 2.22%
Since there are four quarters in a year, the annual rate of return =
2.22% * 4 = 8.88%.
What does a decent return rate mean?
For long-term stock market investments, the majority of investors would consider an average annual rate of return of 10% or above to be a decent ROI. Just remember that this is an average. There will be years with reduced returns, or even negative returns.
ROI is a straightforward formula that determines how much an investment earns in comparison to the initial investment. IRR, on the other hand, offers a "hurdle rate" for contrasting other assets with different cash flows and provides a projected annual rate of return for the investment over time.
To know more about dividend click on the link below:
https://brainly.com/question/2960815
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