Question

John Adams purchased 100 shares of XYZ Corporation for $25 a share and paid a commission of $125. The current price of the stock is $32 per share. Last year, John received dividends of $1 per share.
Calculate the 1 - year stock return
Calculate stock returns
(Giving this problem as many points as I can because I am at my wits end with this problem and my personal finance teacher)

Answer 1

Answer:

$675

Step-by-step explanation:

Calculate stock return:

Stock return = [(PI- P0)+D]/P0

PO = Initial stock price

Pl = Ending stock price

D = Dividend

Given: PO [$25*1 + 125]/100 = $26.25 Pl = $32

Stock return in percentage = [($32 - $26.25) + 1]/26.25

= 25.71%

Value of stock return = [(32*1 00) + ($1 $26.25*1 OO

= $675