Question

You bought 150 shares of stock at $15.00 per share. At the end of the year, you received a dividend of $50.00 and your stock was valued at $2,500.00. What was your rate of return? Question 1 options:

Answer 1

13.33%

Step-by-step explanation:

Data provided in the question:

Number of shares bought = 150

Price per share = $15.00

Dividend received = $50.00

Value of the stock at the end of the year = $2,500

Now,

Total investment = Number of shares bought × Price per share

= 150 × $15.00

= $2,250

Return on stocks

= Value of the stock at the end of the year + Dividend received - Total investment

= $2,500 + $50 - $2,250

= $300

Therefore,

Rate of return on stock = [ Return of stock ÷ Amount invested ] × 100%

= [ $300 ÷ $2,250 ] × 100%

= 13.33%