Todd purchased 600 shares of stock at a price of $68.20 a share and received a dividend of $1.42 per share. After six months, he resold the stock for $71.30 a share. What was his total dollar return?
A)$1,008
B)$1,860
C)$2,712
D)$3,211
E)$3,400

Question

Quizplus · Accepted Answer

The total dollar return includes both the capital gain and the dividend income. Capital gain = (Final price - Initial price) * Number of shares = ($71.30 - $68.20) * 600 = $3.10 * 600 = $1,860. Dividend income = Dividend per share * Number of shares = $1.42 * 600 = $852. Total dollar return = Capital gain + Dividend income = $1,860 + $852 = $2,712.

Todd Purchased 600 Shares of Stock at a Price of $68.20