Question

Janice bought 40 shares of stock at $31.82 per share. She received dividends of $1.11 per share for 1 year. What was her profit in dividends? What was her ROI? I am super confused and I don't know how to figure it out.

Answer 1

the answer is 3.5% because it asks you for the rounded answer

Explanation:

Number of shares = 40

Dividend amount = $1.11

DP = 40 * 1.11 = $44.4=profit

The initial value of the shares 40 * 31.82 = $1272.8

ROI = 3.5%

Answer 2

Dividend profit = $44.4

ROI = 3.49%

Explanation:

a. The dividend profit is calculated with the formula below:

Dividend profit = number of shares * dividend amount

From the question:

Number of shares = 40

Dividend amount = $1.11

Therefore:

DP = 40 * 1.11 = $44.4

b. ROI is the return on investment and it is calculated by dividing the net profit by initial value of the investment and multiplying by 100:

`ROI = (P)/(IV) * 100`

The profit on the shares is $44.4.

The initial value of the shares 40 * 31.82 = $1272.8

Therefore, the ROI is:

`ROI = (44.4)/(1272.8) * 100\\\\`

ROI = 3.49%