If you purchase 100 shares of Ajax Corporation for $15 a share and one year later sell it for $20 a share, what was your return if the stock paid $2 per share dividends? (Ignore commissions and trading fees. Round to the nearest whole percent.)
A) 10%
B) 33%
C) 47%
D) 40%

Question

Quizplus · Accepted Answer

The total return is the sum of the capital gain and the dividends received. The capital gain is the difference between the selling price and the purchase price, which is $20 - $15 = $5 per share. The dividends received are $2 per share. Therefore, the total return is $5 + $2 = $7 per share. The percentage return is $7 / $15 * 100% = 46.67%, which rounds to 47%.

If You Purchase 100 Shares of Ajax Corporation for $15