Question

A year ago, you purchased 300 shares of Stellar Wood Products, Inc. stock at a price of $8.62 per share. The stock pays an annual dividend of $0.10 per share. Today, you sold all of your shares for $4.80 per share. What is your total dollar return on this investment

Answer 1

Total Dollar Return -$1,116

Step-by-step explanation:

Calculation for the total dollar return on this investment

First step is to find the Total Selling Price using this formula

Total Selling Price= Shares purchased *Price per share sold

Let plug in the

Total Selling Price= 300*4.80

Total Selling Price= $1,440

The next step is to calculate for the total dollar return the investment using this formula

Total Dollar Return = Selling Price +Annual Dividend - Purchase Price

Let plug in the formula

Total Dollar Return = $1,440 + (300 shares ×$0.10 per share) - (300 shares *$8.62 per share)

Total Dollar Return=$1,440+$30-$2,586

Total Dollar Return = -$1,116

Therefore the total dollar return on this investment will be -$1,116