Question

Investment Return Goodyear stock ended the previous year at $20.41 per share. It paid a $0.58 per share dividend last year. It ended last year at $32.31. If you owned 100 shares of Goodyear, what was your dollar return and percent return for the year?

Dollar Return = (Ending Value – Beginning Value) + Income

Percentage Return = [(Ending Value – Beginning Value) + Income]/Beginning Value

Answer 1

Beginning Price per share = $20.41
Dividend per share = $0.58
Ending Price per share = $32.31
Number of shares owned = 100

Ending Value = Ending Price per share * Number of shares owned
Ending Value = $32.31 * 100
Ending Value = $3,231

Beginning Value = Beginning Price per share * Number of shares owned
Beginning Value = $20.41 * 100
Beginning Value = $2,041

Income = Dividend per share * Number of shares owned
Income = $0.58 * 100
Income = $58

Dollar Return = Ending Value - Beginning Value + Income
Dollar Return = $3,231 - $2,041 + $58
Dollar Return = $1,248

Percentage Return = Dollar Return / Beginning Value
Percentage Return = $1,248 / $2,041
Percentage Return = 0.6115 or 61.15%