If you purchase 100 shares of Ajax Corporation for $15 a share and one year later sell it for $20 a share,what was your return if the stock paid $2 per share dividends? (Ignore commissions and trading fees.Round to the nearest whole percent.)

Question

Quizplus · Accepted Answer

The return is calculated by adding the capital gain and the dividend income, then dividing by the initial investment. The capital gain is ($20 - $15) * 100 = $500, and the dividend income is $2 * 100 = $200. The total return is $500 + $200 = $700. The initial investment is $15 * 100 = $1500. The return percentage is ($700 / $1500) * 100 = 46.67%, which rounds to 47%.

If You Purchase 100 Shares of Ajax Corporation for $15