Question

You purchased 1,450 shares of stock in Natural Chicken Wings, Inc., at a price of $43.64 per share. Since you purchased the stock, you have received dividends of $1.13 per share. Today, you sold your stock at a price of $47.82 per share. What was your total percentage return on this investment?

Answer 1

12.17%

Step-by-step explanation:

The computation of total percentage return is shown below:

(Dividend per share + Capital gain per share ) ÷ Initial investment OR Purchase per share)

Where

Capital gain per share = (Sale price per share - Purchase price per share)

= ($47.82 - $43.64 + $1.13) ÷ $43.64)) × 100

= $5.31 ÷ $43.64 × 100

= 0.121677 × 100

= 12.17%

Therefore for computing the total percentage return we simply applied the above formula.