Question

Six months ago, you purchased 2,800 shares of ABC stock for $31.99 a share. You have received dividend payments equal to $0.60 a share. Today, you sold all of your shares for $34.67 a share. What is your total dollar return on this investment?

Answer 1

The total dollar return on the investment is $9,264

Step-by-step explanation:

The total dollar return on the investment can be calculated by subtracting the initial cost of the shares from the final selling price and adding the dividend payments received.

The initial cost of the shares is calculated by multiplying the number of shares purchased by the purchase price. In this case, the initial cost is 2,800 shares * $31.99/share = $89,552.

The final selling price is calculated by multiplying the number of shares sold by the selling price. In this case, the final selling price is 2,800 shares * $34.67/share = $97,136.

The total dividend payment received is calculated by multiplying the number of shares purchased by the dividend payment per share. In this case, the total dividend payment received is 2,800 shares * $0.60/share = $1,680.

To calculate the total dollar return on the investment, we sum up the final selling price and the dividend payments received, and subtract the initial cost. Therefore, the total dollar return on this investment is $97,136 + $1,680 - $89,552 = $9,264.