Question

You purchased Butterfly Wing Corp. stock exactly one year ago at a price of $77.66 per share. Over the past year, the stock paid dividends of $2.92 per share. Today, you sold your stock and earned a total return of 15.84 percent. What was the price at which you sold the stock

Answer 1

The shares were bought at a price of $26.981

Step-by-step explanation:

The price of the share be represented as "y "

Capital gain= ( y - 77.6)

Dividend = 2.92

Total return in dollar = ( y - 77.6)+ 2.92

total return in %= 15.84%

Return (%) = (( y -77.6)+ 2.92)/77.66= 15.84%

(( y -77.6)+ 2.92)/77.66= 0.1584

cross multiplying

(( y -77.6)+ 2.92)=77.66 × 0.1584

y -14.68 = 12.301344

Collecting like terms

y =26.98

The shares were bought at a price of $26.981