Question

You purchased 100 shares of resorts, inc. stock at a price of $35.87 a share exactly one year ago. you have received dividends totaling $1.05 a share. today, you sold your shares at a price of $46.26 a share. what is your total dollar return on this investment?

O $10.39

O $11.44

O $1,039

O $1,144

Answer 1

The total dollar return on this investment O $1,144 . Therefore , O $1,144 is correct.

To calculate the total dollar return on your investment, you need to consider both the capital gain from the change in stock price and the dividends received.

First, calculate the capital gain:

Original purchase price per share = $35.87

Selling price per share = $46.26

Capital gain per share = Selling price per share - Purchase price per share

= $46.26 - $35.87

= $10.39

Now, calculate the total capital gain for all 100 shares:

Total capital gain = Capital gain per share × Number of shares

= $10.39 × 100

= $1,039

Next, add the dividends received:

Dividends per share = $1.05

Number of shares = 100

Total dividends received = Dividends per share × Number of shares

= $1.05 × 100

= $105

Now, add the capital gain and dividends to find the total dollar return:

Total dollar return = Total capital gain + Total dividends received

= $1,039 + $105

= $1,144