An investor purchases 200 shares of a company at a purchase price of $30.00 at the start of the year. During the year, the company paid out $1.75 of dividends per share. The investor then sells all
The shares at a selling price of $27.00. Determine the investor's total percentage return.

Question

Quizplus · Accepted Answer

The total return is calculated as follows:Total return = (Selling price - Purchase price + Dividends) / Purchase price * 100Total return = (27.00 - 30.00 + 1.75) / 30.00 * 100Total return = -4.17%

An Investor Purchases 200 Shares of a Company at a Purchase