Question

You purchased 270 shares of a particular stock at the beginning of the year at a price of $76.33. The stock paid a dividend of $1.45 per share, and the stock price at the end of the year was $82.84. What was your dollar return on this investment

Answer 1

Total dollar return is $ 2,149.20

Step-by-step explanation:

The dollar return is the increase in price per share plus the dividend per share multiplied by the number of shares purchased.

The increase in share price=P1-Po

P1 is the price now which is $82.84

Po is the initial price of $76.33

The increase in share price=$82.84-$76.33=$6.51

Total return per share =$6.51 +$1.45=$7.96

Total dollar return=number of shares* total return per share=$7.96*270=$ 2,149.20

Total dollar return on the investment in shares is $ 2,149.20