Suppose you bought 100 shares of stock at an initial price of $37 per share. The...

Suppose you bought 100 shares of stock at an initial price of $37 per share. The stock paid a dividend of $0.28 per share during the following year, and the share price at the end of the year was $41. (1) What is your total dollar return on this investment? (2) What is the percentage return on the investment?

Solutions

Expert Solution

Total dollar return=(End value-Beginning value+Dividend)*100 shares

=(41-37+0.28)*100

=$428

% return=Total dollar return/Beginning value

=428/(100*37)

=428/3700

=11.57%(Approx)

jeff jeffy answered 1 year ago

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