Eight months ago,you purchased 400 shares of Winston stock at a price of $46.40 a share.The company pays quarterly dividends of $1.05 a share.Today,you sold all your shares for $48.30 a share.What is your total percentage return on this investment?

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Quizplus · Accepted Answer

The total return on the investment includes both the capital gains and the dividends received. The capital gain per share is calculated as the selling price minus the purchase price: $48.30 - $46.40 = $1.90. The total capital gain is $1.90 * 400 = $760. The total dividends received over eight months (which covers two quarterly dividend payments) is $1.05 * 2 * 400 = $840. The total return is the sum of the capital gains and dividends: $760 + $840 = $1600. The initial investment was $46.40 * 400 = $18,560. The percentage return is ($1600 / $18,560) * 100 = 8.62%.

Eight Months Ago,you Purchased 400 Shares of Winston Stock at a Price