One year ago, you purchased 100 shares of common stock at $25.00 per share. During the past year, you received dividends of $.75 per share. Today, you sold your shares for $24.00 per share. What is your total return on this investment?
A)−.50%
B)−1.00%
C).50%
D)1.00%
E)−10.00%

Question

Quizplus · Accepted Answer

The total return is calculated by considering both the capital loss and the dividends received. The capital loss is ($24.00 - $25.00) * 100 = -$100. The dividends received are $0.75 * 100 = $75. The total return is (-$100 + $75) / ($25.00 * 100) = -$25 / $2500 = -1.00%.

One Year Ago, You Purchased 100 Shares of Common Stock