Here is a question that has stumped me. Why is the return being calculated with a $110 stock price? Shouldn’t it be $100?

Here is a question that has stumped me. Why is the return being calculated with a $110 stock price? Shouldn’t it be $100?

Problem 17-3 Payout Policy and Taxes (LO4)

The expected pretax return on three stocks is divided between dividends and capital gains in the following way: