Nico bought 500 shares of a stock for $24.00 per share on january 1, 2013. he received a dividend of $2.50 per share at the end of 2013 and $4.00 per share at the end of 2014. at the end of 2015, nico collected a dividend of $3.00 per share and sold his stock for $20.00 per share. what is nico's realized total rate of return?
a) -12.5%
b) 12.5%
c) -20.7%
d) 20.7%
how to calculate that?

22.92%

Explanation:

For computing the realized total rate of return, first we have to determine the total share price which is shown below:

Total share price = Sale price of share + dividend end of 2013 + dividend end of 2014 + dividend end of 2015

= $20 + $2.5 + $4 + $3

= $29.50

And, the purchase price is $24

So, the return would be

= Total share price - purchase price

= $29.50 - $24

= $5.50

Now the realized total rate of return would be

= Return ÷ Purchase price

= $5.50 ÷ $24

= 22.92%

This is the answer but the same is not provided in the given options

(E) the product's differential benefits

Explanation:

Product differentiation is the use of unique, distinctive characteristics or special features to a product to ensure unique selling proposition of the product. It helps in defending high prices: It helps the companies to give a reason why they charge a high price for their product. It allows the companies to compete in areas other than price the differentiation allows a company to achieve a competitive advantage over other companies offering similar product substitutes. It is an essential marketing process that is of vital economic importance to a business.