Final answer:
The total dollar return on the investment in Titan Wood Products stock is $1052.60, which includes both capital gains and dividends received over the past year.
Step-by-step explanation:
To calculate the total dollar return on an investment in stocks, we need to consider both the capital gain obtained from the increase in the stock's price and the dividends received. The student purchased 190 shares of Titan Wood Products at $52.94 per share, received dividends of $0.60 per share, and the current stock price is $57.88. Therefore, the capital gain per share is the current price ($57.88) minus the purchase price ($52.94), which equals $4.94. Multiply this by the number of shares (190) to get the total capital gain. Similarly, the total dividends are the dividend per share ($0.60) times the number of shares (190).
The calculation is as follows:
- Capital gain per share = Current price - Purchase price
- Capital gain per share = $57.88 - $52.94 = $4.94
- Total capital gain = Capital gain per share × Number of shares
- Total capital gain = $4.94 × 190 = $938.60
- Total dividends = Dividend per share × Number of shares
- Total dividends = $0.60 × 190 = $114.00
The total dollar return is the sum of the total capital gain and total dividends.
Total dollar return = Total capital gain + Total dividends
Total dollar return = $938.60 + $114.00 = $1052.60