Question

Mr Wong invested 5 000 units of shares valued at $1.60 per unit in Cemerlang Company. He received dividend of $118 twice and a bonus of 3.3% during the time he was holding the shares. After selling all the units of shares, he received $9 100. Calculate the return on investment for Mr Wong.​

Answer 1

The total amount of money Mr. Wong received from dividends is $118 * 2 = $236.

The total value of Mr. Wong's shares before the bonus was 5,000 * $1.60 = $8,000.

The bonus he received was 3.3% of $8,000 = $264.

So, the total amount of money Mr. Wong received from the investment was $236 + $264 + $9,100 = $9,600.

The return on investment for Mr. Wong is the total amount of money he received from the investment divided by the amount of money he initially invested, expressed as a percentage.

So, the return on investment is ($9,600 / $8,000) * 100% = 120%.

Therefore, the return on investment for Mr. Wong is 120%.