Question

FedEx Corp. stock ended the previous year at $113.39 per share. It paid a $0.40 per share dividend last year. It ended last year at $126.69. If you owned 300 shares of FedEx, what was your dollar return and percent return

Answer 1

Answer:

$4,110 and 12.08%

Explanation:

The computation of the dollar return and the percent return is shown below:

Dollar Return = (Ending Value − Beginning Value) + Income  earned

where,

Ending value is

= $126.69 × 300 shares

= $38,007

Beginning value is

= $113.39 × 300 shares

= $34,017

And, the income earned is

= Dividend per share paid × number of shares owed

= $0.40 × 300 shares

= $120

So, the dollar return is

= $38,007 - $34,017 + $120

= $4,110

And, the percentage return is

= (Dollar return ÷ Beginning value) × 100

= ($4,110 ÷ $34,017) × 100

= 12.08%