One year ago, you purchased 600 shares of Westover Paints stock at a price of $3.68 per share. The stock pays an annual dividend of $.02 per share. Today, you sold all of your shares for $11.21 per share. What is your total dollar return on this investment?

Question

Quizplus · Accepted Answer

The total dollar return on the investment includes both the capital gains (or losses) and the dividends received. The capital gain per share is the selling price minus the purchase price, which is $11.21 - $3.68 = $7.53. For 600 shares, the total capital gain is 600 * $7.53 = $4,518. The total dividend income is the dividend per share times the number of shares, which is $0.02 * 600 = $12. Therefore, the total dollar return is the sum of the capital gain and the dividend income, which is $4,518 + $12 = $4,530.

One Year Ago, You Purchased 600 Shares of Westover Paints