Question

Hannah purchased 65 shares of Best Buy stock at $36 per share. After 3 years, Hannah sold the stock for $43 per share. During the time she held the stock, Hannah received the dividends totaling $4.00 per share. What is Hannah’s total return?

Answer 1

$715

Step-by-step explanation:

Data provided in the question:

Number of shares purchased by Hannah = 65

Buying price of the shares = $36 per share

Selling cost of the share = $43 per share

Total Dividends received = $4.00 per share

Now,

Capital return per share = Selling cost - Buying cost

= $43 - $36

= $7 per share

Therefore,

Total return per share = Capital return + Dividends received

= $7 + $4

= $11

Thus,

Total return = Number of share × Total return per share

= 65 × $11

= $715