Answer:
Hernandezes' total return for his investment is $751.4
Explanation:
Total Return is calculated as
(Sale Price - Purchase Price + dividend)
Effective Sales Price is calculated as
= (Number of Stocks * Selling Price) - Commissions
= (140 * 35) - 12 = $4,888
Effective Purchase Price is calculated as:
= (Number of Stocks * Selling Price) + Commissions
= (140 * 31) + 8 = $4,348
Total dividend is calculated as:
= 140 * $1.51 = $211.4
Therefore, Total Return total return is
= (4888 - 4348 + 211.4) = $751.4
Finally, the Rate of Return = 751.4/4348 = 17.28%
