One year ago, you purchased 800 shares of stock for $37 per share.The stock pays $0.25 a share in dividends each year.Today, you sold your shares for $43.25 per share.What is your total dollar return on this investment?

Question

Quizplus · Accepted Answer

The total dollar return includes both the capital gain and the dividends received. The capital gain is (43.25 - 37) * 800 = $5,000. The dividends received are 0.25 * 800 = $200. Therefore, the total dollar return is $5,000 + $200 = $5,200.

One Year Ago, You Purchased 800 Shares of Stock for $37