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15. Perry purchased 100 shares of Ferro, Inc. common stock for $25 per share one year ago. During the year, Ferro, Inc. paid cash dividends

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15. Perry purchased 100 shares of Ferro, Inc. common stock for $25 per share one year ago. During the year, Ferro, Inc. paid cash dividends of $2 per share. The stock is currently selling for $30 per share. If Perry sells all of his shares of Ferro, Inc. today, what rate of return would he realize? A) 28% B) 42% C) 1% D) 100% P0: $25 P1 = $30 D1 = $2 Return 2 (Capital gain + Dividend) / P0 Return = (30-25+2)/25 = 7/25 = 28%

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