Six months ago,you purchased 1,200 shares of ABC stock for $21.20 a share. You have received dividend payments equal to $.60 a share. Today,you sold all of your shares for $22.20 a share. What is your total dollar return on this investment?

Question

Quizplus · Accepted Answer

The total dollar return is calculated by adding the capital gain and the dividend income. The capital gain is ($22.20 - $21.20) * 1,200 = $1,200. The dividend income is $0.60 * 1,200 = $720. Therefore, the total dollar return is $1,200 + $720 = $1,920.

Six Months Ago,you Purchased 1,200 Shares of ABC Stock for $21.20