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Assume that at the beginning of the year you buy 100 shares of stock for $37...

Assume that at the beginning of the year you buy 100 shares of stock for $37 per share. During the year, you were paid dividends of $1.85 per share. At the end of the year, the value of the stock rises to $40.33 per share. What is the total dollar return on your investment?

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Answer #1

What is the total dollar return on your investment?

Answer: $518

Dollar return on investment = Total Dividend + Total Capital gain

Total Dividend = Dividend per share * number of shares

                             =$1.85 *100

                             =$185

Total Capital gain = (Ending price – beginning price) * Number of shares

                             = ($40.33 - $37) * 100

                             =$333

Dollar return on investment = Total Dividend + Total Capital gain

                                                = $185 + $333

                                                =$518

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