Question

Return on Stock. Joel purchased 100 shares of stock for $35 per share. During the year, he received dividend checks amounting
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Answer #1

The return on the stock is computed as shown below:

= ( Sale price - Purchase price + Dividend ) / Purchase price

Sale price is computed as follows:

= $ 56 x 100

= $ 5,600

Purchase price is computed as follows:

= $ 35 x 100

= $ 3,500

Dividend received = $ 302

Plugging these values in the above mentioned formula, we shall get:

= ( $ 5,600 - $ 3,500 + $ 302 ) / $ 3,500

= 68.63% Approximately

Feel free to ask in case of any query relating to this question

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