finance

About a year ago, John Bates bought some shares in the Seismic Mutual Fund. He brought the stock at $24.50 a share, and it now trades at $26. Last year, the fund paid dividends of 40 cents a share and had capital gains distributions of $1.83 a share. Using the approximate yield formula, what rate of return did John earn on his investment? Repeat the Calculation using a handheld financial calculator. Would he have made a 20% rate of return if the stock had raised to $30 a share?