If you purchase 100 shares of XYZ Corporation for $50 per share, receive a dividend check for $200, and then sell the stock for $62 per share, what will your return on the stock be?
A) 4%
B) 424%
C) 24%
D) 28%

Question

Quizplus · Accepted Answer

To calculate the return, first find the total initial investment: 100 shares * $50 = $5000. Then, calculate the total amount received from selling the shares: 100 shares * $62 = $6200. Add the dividend received: $6200 + $200 = $6400. The profit is $6400 - $5000 = $1400. The return percentage is ($1400 / $5000) * 100% = 28%.

If You Purchase 100 Shares of XYZ Corporation for $50