Six months ago, you purchased 1,300 shares of New Tech stock for $12.70 a share. You have received dividend payments equal to $.05 a share. Today, you sold all of your shares for $14.20 a share. What is your total dollar return on this investment?

Question

Quizplus · Accepted Answer

The total dollar return is calculated by adding the capital gain and the dividend income. The capital gain is ($14.20 - $12.70) * 1,300 = $1,950. The dividend income is $0.05 * 1,300 = $65. Therefore, the total dollar return is $1,950 + $65 = $2,015.

Six Months Ago, You Purchased 1,300 Shares of New Tech