Question

Suppose you invested $60 in the Ishares Dividend Stock Fund (DVY). It paid a dividend of $0.70 today and then you sold it for $65. What was your return on the investment? A) 8.25% B) 9.00% C) 9.50% D) 9.75%

Answer 1

C) 9.50%

Step-by-step explanation:

Given that

The sale price of a share = $65

Purchase price of share = $60

And, the dividend received = $0.70

So, The formula and the computation of the return on investment is shown below:

Return on investment = (Sale price of a share - purchase price of share + dividend received) ÷ (Investment price) × 100

= ($65 - $60 + $0.70) ÷ ($60) × 100

= ($5.70) ÷ ($60) × 100

= 9.50%