One year ago,you purchased a stock at a price of $32.50.The stock pays quarterly dividends of $.40 per share.Today,the stock is worth $34.60 per share.What is the total dollar return per share to date from this investment?

Question

Quizplus · Accepted Answer

The total dollar return per share consists of two parts: the dividend income and the capital gain/loss. To calculate the dividend income, we need to multiply the quarterly dividends by the number of quarters. One year has four quarters, so the total dividends per share are:

Dividends = 4 x $0.40 = $1.60

To calculate the capital gain/loss per share, we need to subtract the initial price from the current price:

Capital gain/loss = $34.60 - $32.50 = $2.10

Finally, we can add the dividend income and the capital gain/loss to get the total dollar return per share:

Total return = Dividends + Capital gain/loss = $1.60 + $2.10 = $3.70

Therefore, the answer is B.

One Year Ago,you Purchased a Stock at a Price of $32.50.The