Question

Jack bought 50 shares of stock at $18.22 per share. That year, he received total dividends of $72.88. At the end of the year, his stock was valued at $19.11 per share. What was his ROI?

Answer 1

Return of interest is 13%

Step-by-step explanation:

Given:

Number of shares = 50

Cost of 1 share = $18.22

Total cost of the shares = 50 × $18.22

= $911

At the end of the year, the value of 1 share = $19.11

Total cost at the end of one year = 50 × $19.11

= $955.5

Gain in value = $955.5 - $911

= $44.5

Total dividend = $72.88

Total profit = $72.88 × $44.5

= $117.38

Return of Interest = Total profit / Initial total cost of the share

= ( $117.38 / $911 ) × 100

= 13%

Thus, return of interest is 13%