Question

One year ago, you purchased 100 shares for $38 a share. The share pays dividends of...

One year ago, you purchased 100 shares for $38 a share. The share pays dividends of $.20 per share per quarter. Today, you sold your shares for $40.50 a share. What is your total dollar return on this investment?

a. $315

b. $330

c. $270

d. $285

e. $340

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Answer #1

Return on investment = Number Of Shares *[Annual Dividend + (ending market price - beginning market price)]

=100 shares [($0.20*4)+($40.50-38)]

=100 shares *(3.3)

=$330

Therefore the correct option is b.$330

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