Question

sarah and james hernandez purchased 320 shares of macy’s stock at $15 a share. one year later, they sold the stock for $35.00 a share. they paid a broker a commission of $7 when they purchased the stock and a commission of $11 when they sold the stock. during the 12-month period the couple owned the stock, macy’s paid dividends that totaled $2.05 a share. calculate the hernandezes’ total return for this investment.

Answer 1

The overall return on investment for the Hernandezes is $7038.

What is the return on investment?

Return on investment (ROI) or return on costs (ROC) is a time-dependent ratio of net income to investment (costs resulting from an investment of some resources at a point in time). A high ROI shows that the benefits outweigh the expenses of the investment. ROI is a performance indicator that is used to measure the effectiveness of an investment or to evaluate the efficiencies of many investments. What is considered a "good" ROI depends on factors such as the investor's risk tolerance and the time it takes to recoup their investment. All other things being equal, risk-averse investors may accept lower returns if they take less risk. Similarly, an investment that takes a long time to pay back needs a higher ROI to be attractive to investors.

The most common way to calculate is: net income divided by total investment cost

ROI = net income / investment cost x 100.

To learn more about the return on investment, click

brainly.com/question/13575981

#SPJ1