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State the income treatment
The original security costs 100 at the start. At the end its price is 103 and it pays cash of 4. The ending price excludes the separately held cash. There are no fees, taxes, external transfers or earlier reinvestment events in this case.
Separate the two sources of terminal wealth
Price gain is 103−100 = 3. Income is 4. Ending wealth including cash is 107, so total gain is 7 on an initial 100. Price return is 3%; income contribution is 4%; total return is 7%.
| Component | Amount | Return contribution |
|---|---|---|
| Price gain | 3 | 3% |
| End distribution | 4 | 4% |
| Total gain | 7 | 7% |
Inspect a full account value
If the report already labels ending account wealth as 107, adding the cash again would produce 111 and a false 11% return. The two correct records are price 103 plus separate cash 4, or complete ending wealth 107.
Keep the period named
The 7% is the return for the supplied holding period. Without its duration, it is not an annual rate. Earlier receipt timing or reinvestment would require a more complete schedule rather than reusing the end-period assumption.