Question

15) One year ago, you purchased 400 shares of Romy’s Roses stock at a price of $24.15 a share. The stock pays an annual dividend of $1.82 per share. Today, you sold all of your shares for $29.20 per share. What is your total dollar return on this investment?

Answer 1

Answer:

= $2,748

Explanation:

Number of shares purchased = 400

Price per share (a year ago)= $24.15

Total price paid a year ago = 400*$24.15 = $9,660

Annual dividend per share = $1.82

Total dividend earned = 400 * $1.82 = $728

Price per share (today)= $29.20

Proceeds from sale of shares today = 400*$29.20 = $11,680

Next, find total dollar return;

Total dollar return = Total dividend earned + Proceeds from sale of shares today - Total price paid a year ago

= $728+ $11,680 - $9,660

= $2,748