Three years ago you bought 165 shares of Stock ABC, which was then selling at $12.25...

Three years ago you bought 165 shares of Stock ABC, which was then selling at $12.25 per share. Today, you sold it for $11.85 per share. For the first year you held the stock, you received a dividend of $.18 per quarter. During the second year, you received a dividend of $.24 per quarter. Finally, during the last year, you have received a dividend of $.30 per quarter. What is your total dollar return?

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Expert Solution

Initial investment = 165 * 12.25 = 2021.25

Total dividend received in three year = 165 (.18 + .24 + .3)

= 165 * .72

= 118.8

Proceed from sale of stock = 165 * 11.85

= 1955.25

Total gain from stock = (1955.25 + 118.8) – 2021.25 = 52.8

jeff jeffy answered 1 year ago

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