A year ago,you purchased 300 shares of New Tech stock at a price of $49.03 per share.The stock pays an annual dividend of $.10 per share.Today,you sold all your shares for $58.14 per share.What is your total dollar return on this investment?
A)$2,755
B)$2,733
C)$2,703
D)$2,763
E)$3,006

Question

Quizplus · Accepted Answer

The total dollar return on the investment can be calculated as the sum of the capital gain and the dividends received.

Capital gain per share = Selling price per share - Purchase price per share = $58.14 - $49.03 = $9.11

Total capital gain = 300 shares × $9.11 = $2,733

Dividends received per share = $0.10

Total dividends received = 300 shares × $0.10 per share = $30

Total dollar return = Total capital gain + Total dividends received = $2,733 + $30 = $2,763

Therefore, the correct answer is D) $2,763.

A Year Ago,you Purchased 300 Shares of New Tech Stock