OK, first I have to presume that 0.38 means a total gain of 38% on this transaction. If that is true then the total gain is: $26*0.38 = $9.88. Therefrom deduct the increase in share price of $8.00 ($34-26) and that in fact leaves you with dividends paid of $1.88.

Lee purchased a stock one year ago for $26. The stock is now worth $34, and the total return to Lee for owning the stock was 0.38. What is the dollar amount of dividends that he received for owning the stock during the year?

I thought it was:

RT = P1 - P0 + CF1 / P0

RT= (34-26 + .38) / 26

RT= ?

I have the answer- it is 1.88, but doing it my way (above), I dont get the correct solution. Help please!