Blaxo Balloons manufactures and distributes birthday balloons. At the beginning of the year Blaxos common stock was

Question:

Blaxo Balloons manufactures and distributes birthday balloons. At the beginning of the year Blaxo’s common stock was selling for $20 but by year end it was only $18. If the firm paid a total cash dividend of $2 during the year, what rate of return would you have earned if you had purchased the stock exactly one year ago? What would your rate of return have been if the firm had paid no cash dividend?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...