Question

One year ago, you purchased 300 shares of Southern Cotton at $32.60 a share. During the past year, you received a total of $280 in dividends. Today, you sold your shares for $35.80 a share. What is your total return on this investment?

Answer 1

Answer:

Total Return on investment=12.678%≅12.68%

Explanation:

Given;

Number of Shares= 300

Purchasing price of each share=$32.60

Total Dividends= $280

Selling price of each share= $35.80

Find:

Total Return on investment=?

Solution:

Total Return on investment=$\frac{(Selling\ Price-Purchase\ Price + \frac{Total\ Dividends}{Shares})}{Purchase\ Price}$

$Total\ Return\ on\ investment=\frac{\ 35.80-\ 32.60 +\frac{\ 280}{300}}{\ 32.60}$

Total Return on investment=0.12678

In Percentage:

Total Return on investment=12.678%≅12.68%