Ashley purchased a share at a price of $27 a share. She received quarterly dividends of $0.75 per share. After one year, Ashley sold the stock at a price of $29.25 a share. What is her percentage total return on this investment?

Question

Quizplus · Accepted Answer

The total return includes both capital gains and dividends. Capital gain = $29.25 - $27 = $2.25. Total dividends received = $0.75 * 4 = $3. Total return = $2.25 + $3 = $5.25. Percentage return = ($5.25 / $27) * 100% = 19.4%.

Ashley Purchased a Share at a Price of $27 a Share