Arnell Johnson bought 200 shares of Black Petroleum Company for $100 per share and paid a commission of $50.He sold the stock five years later for $125 per share and paid $65 commission.While he held the stock,it paid a dividend of $4.00 per share.What was Arnell's total dollar return on this stock?

Question

Quizplus · Accepted Answer

Arnell's total dollar return includes the capital gain (or loss), the dividends received, and accounts for the commissions paid. 1. Initial cost = 200 shares * $100/share + $50 commission = $20,050.2. Selling price = 200 shares * $125/share - $65 commission = $24,935.3. Dividends = 200 shares * $4/share = $800.4. Total return = Selling price + Dividends - Initial cost = $24,935 + $800 - $20,050 = $5,685.

Arnell Johnson Bought 200 Shares of Black Petroleum Company for $100