Answered

One year ago, you purchased a stock at a price of $32.50. The stock pays quarterly dividends of $.40 per share. Today, the stock is worth $34.60 per share. What is the total dollar return per share to date from this investment?

Answer :

Answer:

The total dollar return per share is 11% or $3.7

Explanation:

Total dollar return = (Selling price- buying price + total dividend)/buying price.

The buying price is 32.50

The selling price= 34.60

The total dividends are 0.4*4=1.6 because in 1 year there will be 4 quarterly dividends.

Now we input these numbers in a formula

(34.60-32.50+1.6)/32.50=0.11

= 11%

In dollar terms the return is

34.60-32.50+1.6=3.7

Other Questions