Ashley purchased a stock at a price of $27 a share.She received quarterly dividends of $0.75 per share.After one year, Ashley sold the stock at a price of $29.25 a share.What is her percentage total return on this investment?
A) 10.3%
B) 11.1%
C) 17.9%
D) 19.4%

Question

Quizplus · Accepted Answer

First, we need to calculate the total dividends received by Ashley over the year:

Dividends per share = $0.75 
Dividends per quarter = $0.75 x 4 = $3 
Total dividends per share over the year = $3 x 4 = $12

Now, let's calculate Ashley's total return:

Total return = (Sale price + Dividends received - Purchase price) / Purchase price x 100%

Total return = ($29.25 + $12 - $27) / $27 x 100% = 0.1944 x 100% = 19.44%

Therefore, the percentage total return on Ashley's investment is 19.4% (rounded to one decimal place), which is option D.

Ashley Purchased a Stock at a Price of $27 a Share.She