Rx Corp. stock was $60.00 per share at the end of last year. Since then, it paid a $1.00 per share dividend last year. The stock price is currently $62.50. If you owned 400 shares of Rx, what was your percent return?
A) 1.67 percent
B) 4.17 percent
C) 5.60 percent
D) 5.83 percent

Question

Quizplus · Accepted Answer

The percent return can be calculated by considering both the dividend received and the increase in stock price. The dividend contributes $1.00 per share, and the stock price increased from $60.00 to $62.50, a $2.50 increase per share. For 400 shares, the total return is ($1.00 + $2.50) * 400 = $1400 on an initial investment of 400 * $60.00 = $24000. The percent return is ($1400 / $24000) * 100 = 5.83%.

Rx Corp Stock Was $60