Question

"you bought a share of tall timber co. stock for $46.50 at the beginning of the year. during the year the stock paid a $2.75 dividend, and at the end of the year it trades at $44.75. what is the total return on your investment

Answer 1

The total revenue from the initial investment made is calculated by adding the trading price and the dividend

total revenue = $2.75 + $44.75
total revenue = $47.5

This total revenue is equal to the total return. Hence, the answer is $47.5, which is higher than the amount investment. This means that the return is positive.