Question

Sally Clark purchased 500 shares of ABC corporation for $10 per share and oaid a total commission of $200. The current price of the stock is $12 per share. Last year, Sally received dividends of $2 per share​

Answer 1

38.46%

The question

Based on the information given, compute stock returns.

Step-by-step explanation:

The percentage return will be

The actual returns/ amount invested x 100

Returns represent gains from the share.

1. The gain in share price

= Current value - original value

=($12 x 500 ) - ($10 x 500)

=$6,000 - $5,000

=$1,000

2. gain from dividends

=$2 x 500

=$1,000

Total gain = $1000 + 1000 = $2000

The amount invested = original value + commissions

=($10 x 500) + $200

=$5200

The percentage gain

= $2000/5200 x 100

=0.384615 x 100

=38.46%