Six months ago, you purchased 1,600 shares of ABC stock for $22.99 a share. You

Question

Six months ago, you purchased 1,600 shares of ABC stock for $22.99 a share. You have received dividend payments equal to $0.80 a share. Today, you sold all of your shares for $25.27 a share. What is your total dollar return on this investment?

$4,928

$4,560

$9,856

$3,648

$1,280

Six months ago, you purchased 1,600 shares of ABC stock for $22.99 a share. You have received dividend payments equal to $0.80 a share. Today, you sold all of your shares for $25.27 a share. What is your total dollar return on this investment?

Explanation / Answer

$4,928 Statement showing computations Particulars Amount Sales Cost = 1600*25.27              40,432.00 Purchase Cost = 1600*22.99              36,784.00 Gain on sale = 40,432 - 36,784                3,648.00 Dividend = 1600 * .80                1,280.00 Total Return = 3648 + 1280                4,928.00

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