You purchased a stock one year ago for $91.20. Today you sold the stock and realized a total return of -63.7% on your investment. During the year you received a total of $2.28 in dividends. At what
Price did you sell the stock?

Question

Quizplus · Accepted Answer

To find the selling price, use the formula for total return: Total Return = (Selling Price + Dividends - Purchase Price) / Purchase Price. Rearranging gives Selling Price = (Total Return * Purchase Price) + Purchase Price - Dividends. Plugging in the values: Selling Price = (-0.637 * 91.20) + 91.20 - 2.28 = $30.83.

You Purchased a Stock One Year Ago for $91