Assume that you purchased 100 shares of a stock for $70 a share, that you received an annual dividend of $0.60 a share, and that you sold your stock for $80 a share at the end of one year. What is the total return for your investment? (Ignore commission amounts for this question.)
A) $100
B) $60
C) $760
D) $860
E) $1,060

Question

Quizplus · Accepted Answer

The total return includes both the capital gain and the dividend income. Capital gain is ($80 - $70) * 100 = $1,000. Dividend income is $0.60 * 100 = $60. Total return is $1,000 + $60 = $1,060.

Assume That You Purchased 100 Shares of a Stock for $70