Spartan Sofas, Inc.: Exciting News About Stock Cash Return

What is the cash return on Spartan stock?

A. 0%

B. 2%

C. 6%

D. 10%

Answer:

The cash return on Spartan stock is 2%.

Hey everyone! Today we have some exciting news about Spartan Sofas, Inc. Let's dive into the details of the cash return on Spartan stock.

In this scenario, Spartan Sofas, Inc. is selling for $50.00 per share today. In one year, Spartan will be selling for $48.00 per share, and the dividend for the year will be $3.00.

The cash return on Spartan stock can be calculated using the formula for cash return, which is:

Cash Return = (Dividend + (Ending Stock Price - Beginning Stock Price)) / Beginning Stock Price

Plugging in the values:

Cash Return = ($3.00 + ($48.00 - $50.00)) / $50.00

Cash Return = ($3.00 - $2.00) / $50.00

Cash Return = $1.00 / $50.00

Cash Return = 0.02 or 2%

So, the cash return on Spartan stock is 2%. It's great to see a positive return on investment!