Question

One year ago, you purchased 100 shares of best wings stock at a price of $49.65 a share. the company pays an annual dividend of $.64 per share. today, you sold for the shares for $43.30 a share. what is your total percentage return on this investment?

a. -13.19 percent
b. -9.10 percent
c. 2.72 percent
d. 14.08 percent
e. -11.50 percent

Answer 1

To get the total percentage return, subtract first the value of the shares bought from the total selling price and add the dividend value.

Shares bought: $49.65 x 100 = $4,965
Total selling price: $43.30 x 100 = $4,330
Dividend: $.64 x 100 = $64
Return: $4,330 - $4,965 + 64 = -$571

Note that the value is negative, it means that there’s loss.
To get the percentage, divide the loss to the value of the shares bought.

Percentage = -$571 / $4,965 = -0.1150 or e.) -11.50%