Question

you purchased 280 shares of a particular stock at the beginning of the year at a price of $75.43. the stock paid a dividend of $1.00 per share, and the stock price at the end of the year was $81.94. what was your dollar return on this investment?

Answer 1

To calculate the dollar return on this investment, we need to consider both the capital gain (or loss) and the dividends received.

Capital Gain/Loss:

The stock price increased from $75.43 to $81.94 per share. Therefore, the capital gain per share is:

$81.94 - $75.43 = $6.51

The total capital gain on 280 shares is:

$6.51 x 280 = $1,822.80

Dividends:

The stock paid a dividend of $1.00 per share, so the total dividends received on 280 shares is:

$1.00 x 280 = $280.00

Total Dollar Return:

The total dollar return on the investment is the sum of the capital gain and the dividends received:

$1,822.80 + $280.00 = $2,102.80

Therefore, the dollar return on this investment is $2,102.80.