Question

You purchased 250 shares of a particular stock at the beginning of the year at a price of $68.12. the stock paid a dividend of $.85 per share, and the stock price at the end of the year was $76.45. required: what was your dollar return on this investment? (do not round intermediate calculations. round your answer to 2 decimal places (e.g., 32.16).)

Answer 1

Answer:

$9.18

Explanation:

Return on Investment is the actual profit / gain received on investment. In case of Investment in the stock the dividend and price appreciation is included in the return.

We will calculate the return on the investment in accounts.

Return = Dividend Received + ( Market Price of Stock - Initial price )

Return = Dividend Received + ( Market Price at the end of the year - Price at the beginning of the year )

Return = $0.85 + ( $76.45 - $68.12 )

Return = $0.85 + $8.33

Return = $9.18