Question

One year ago, you purchased 800 shares of Johnson & Johnson’s stock at $153.50 per share. Today, you plan on selling the shares at the current price of $170.54 per share. Johnson & Johnson paid a quarterly dividend of $1.06 per share over the last year. What is your total dollar return & total percentage return from this investment? Round your total dollar return to the nearest cent (i.e., $2,500.80). Express your total percentage return as a whole number rounded to two decimal places (i.e., 9.84% = 9.84).

Answer 1

The total dollar return from this investment is $14,480. The total percentage return is 11.8%.

Step-by-step explanation:

To calculate the total dollar return from this investment, we first need to calculate the capital gain. The capital gain is the difference between the current price per share and the purchase price per share, multiplied by the number of shares. In this case, the capital gain per share is $170.54 - $153.50 = $17.04. So the total capital gain is $17.04 x 800 = $13,632. Next, we calculate the total dividend received over the last year. The dividend per share is $1.06, so the total dividend received is $1.06 x 800 = $848. Finally, the total dollar return is the sum of the capital gain and the total dividend received: $13,632 + $848 = $14,480. To calculate the total percentage return from this investment, we divide the total dollar return by the initial investment and multiply by 100. The initial investment is the purchase price per share multiplied by the number of shares: $153.50 x 800 = $122,800. So the total percentage return is ($14,480 / $122,800) x 100 = 11.8%.