Question

Tammy Jackson purchased 119 shares of All-American Manufacturing Company stock at $34.10 a share. One year later, she sold the stock for $41 a share. She paid her broker a $29 commission when she purchased the stock and a $52 commission when she sold it. During the 12 months she owned the stock, she received $225 in dividends. Calculate Tammy’s total return on this investment. (Round all intermediate calculations and final answer to the nearest whole number)

Answer 1

Ans.	Total Return on investment = Net sales - Net purchase
		5052 - 4087
		965
	*Calculations of Net sales:
	Sales   = (Shares * sales price) + Dividend received - commission paid
		(119 * 41) + 225 - 52
		4879 + 225 - 52
		5052
	*Calculations of Net purchase:
	Purchase =   (Shares * purchase price) + Commission on purchase
		(119 * 34.10) + 29
		4057.9 + 29
		4086.9
		or 4087