Assume that you purchased 50 shares of Home Depot stock for $35 a share, that you received an annual dividend of $0.30 a share, and that you sold your Home Depot stock for $40 a share at the end of one year.What is the total return for your investment? (Ignore commission amounts for this question.)
A)10.00 percent
B)12.50 percent
C)13.25 percent
D)14.29 percent
E)15.14 percent

Question

Quizplus · Accepted Answer

The initial investment is 50 shares x $35/share = $1,750.

The dividend received is 50 shares x $0.30/share = $15.

The final sale price is 50 shares x $40/share = $2,000.

Therefore, the total return is ($15 + $2,000 - $1,750)/$1,750 = 0.1514 or 15.14%.

Therefore, the best choice is E.

Assume That You Purchased 50 Shares of Home Depot Stock