Answer:
Shares of Winston, Inc. Stock
The total percentage return on this investment is:
= -11.25%
Explanation:
a) Data and Calculations:
Purchase cost = $22,760 (400 * $56.90)
Quarterly dividends received = $440 (400 * $0.55) * 2
Sales price = $19,760 (400 * $49.40)
Total cash receipts from the investment = $20,200 ($440 + $19,760)
Total returns from the investment = -$2,560
Total percentage return on the investment = -$2,560/$22,760 * 100
= -11.25%
b) There is a loss of value on the investment amounting to $2,560, which is 11.25%. The investment actually yielded a negative return.
