One year ago, you purchased 500 shares of stock for $22 a share.The stock pays $0.32 a share in dividends each year.Today, you sold your shares for $24.50 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 ($24.50 - $22) * 500 = $1,250. The dividend income is $0.32 * 500 = $160. Therefore, the total dollar return is $1,250 + $160 = $1,410.

One Year Ago, You Purchased 500 Shares of Stock for $22