Question

Rx Corp. stock was $60.00 per share at the end of last year. Since then, it paid a $1.00 per share dividend last year. The stock price is currently $62.50. If you owned 400 shares of Rx, what was your percent return?

Answer 1

Percentage Return = 5.83%

Step-by-step explanation:

Given data:

per share cost =$60.00

dividend $1.00 per share

stock price $62.50

total number of share = 400

WE know that return is given as

Return = (Ending Value - ( Beginning Value + Income)

where,

Ending value = stock price* number of shares

Beginning value = per share cost * number of shares

income = dividend* number of shares,

so we have return value

= ($62.50 x 400) - ($60.00 x 400 + $1.00 x 400) = $1400

`Percentage\ Return = (1400)/(60 x 400)`

Percentage Return = .0583

Percentage Return = 5.83%