Problem 12-5 (LO12.1) Wanda Sotheby purchased 155 shares of Home Depot stock at $61 a share....

Problem 12-5 (LO12.1)

Wanda Sotheby purchased 155 shares of Home Depot stock at $61 a share. One year later, she sold the stock for $70 a share. She paid her broker a commision of $41 when she purchased the stock and a commision of $48 when she sold it. During the 12 months she owned the stock, she received $132 in dividends. Calculate Wanda’s total return on this investment.

Total return

$

Expert Solution

CALCULATION OF THE RERUTN FROM THE INVESTMENT

PARTICULARS	AMOUNT

Sales (155 Shars X $ 70)	$ 10,850

Less: Purhcase Cost (155 Shares X 61)	$ 9,455
Less: Commssion on Purchase	$ 41
Less: Commssion on Sale	$ 48
Add: dividend Received	$ 132

Total Return on this ivnestment	$ 1,438

Answer = Total Return on this ivnestment = $ 1438

jeff jeffy answered 2 years ago

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