Question

You bought a share of Bavarian Sausage stock for $46.50 at the beginning of the year. During the year the stock paid a $2.75 dividend and at the end of the year it trades at $52.75. What is the total return of your stock investment

Answer 1

$9

Step-by-step explanation:

Given the information above, total return of stock investment is computed as;

Total returns = Dividend + Increase in stock price

Dividend = $2.75

Increase in stock price = $52.75 - $46.5 = $6.25

= $2.75 + $6.25

= $9

Total return of my stock investment is $9

Dollar returns

= (9/46.5) × 100

= 19.35%