Eight months ago,you purchased 400 shares of Winston,Inc.stock at a price of $56.90 a share.To date the company has paid quarterly dividends of $.55 a share twice.Today,you sold all of your shares for $49.40 a share.What is your total percentage return on this investment?

Question

Quizplus · Accepted Answer

First, let's calculate the total dividend received:

Total dividend = 2 * 400 * $0.55 = $440

Next, let's calculate the total cost of the investment:

Total cost = 400 * $56.90 = $22,760

Now, let's calculate the total earnings from the sale:

Total earnings = 400 * $49.40 = $19,760

Finally, let's calculate the percentage return:

Percentage return = ((Total earnings + Total dividend - Total cost) / Total cost) * 100
= (($19,760 + $440 - $22,760) / $22,760) * 100
= (-$2,560 / $22,760) * 100
= -11.2%

Therefore, the correct answer is A) -11.2%.

Eight Months Ago,you Purchased 400 Shares of Winston,Inc