Investment Return WayCo stock was $75 per share at the end of last year.Since then,it paid a $3 per share dividend last year.The stock price is currently $70.If you owned 200 shares of WayCo,what was your percent return?
A)-6.67 percent
B)-2.67 percent
C)4.00 percent
D)4.29 percent

Question

Quizplus · Accepted Answer

To calculate the percent return, we need to add the dividend received to the current price of the stock, and then subtract the initial price of the stock.

Total return = (Dividend + Current Price) - Initial Price
Total return = ($3 + $70) - $75
Total return = $73 - $75
Total return = -$2

Since the return is negative, this means that you lost money on your investment. To calculate the percent return, we divide the total return by the initial investment, and then multiply by 100:

Percent return = (Total return / Initial Investment) x 100
Percent return = (-$2 / ($75 x 200)) x 100
Percent return = -0.011 x 100
Percent return = -1.1%

Therefore, the correct answer is B) -2.67 percent.

Investment Return WayCo Stock Was $75 Per Share at the End