Question

You purchased 100 shares of stock for a share price of $16.84. You sold the stock...

You purchased 100 shares of stock for a share price of $16.84. You sold the stock two years later for a share price of $18.78. You also received total dividend payments of $0.77 per share. What was your total return on your investment?

0 0
Add a comment Improve this question Transcribed image text
Answer #1

ANSWER:

Return on investment (ROI) = return/cost of investment

In case of investment in share,

Return = capital appreciation + dividend

Capital appreciation = selling price of shares - purchase price of shares

= $18.78 - $16.84 = $1.94

Therefore,

Return = $1.94 + $0.77 = $2.71

Cost of investment = $16.84

Therefore,

Return on investment (ROI) = $2.71/$16.84

= 16.1%

Add a comment
Know the answer?
Add Answer to:
You purchased 100 shares of stock for a share price of $16.84. You sold the stock...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT