Six months ago, you purchased 2,200 shares of ABC stock for $27.49 a share. You
ID: 2766560 • Letter: S
Question
Six months ago, you purchased 2,200 shares of ABC stock for $27.49 a share. You have received dividend payments equal to $0.70 a share. Today, you sold all of your shares for $29.48 a share. What is your total dollar return on this investment?
$11,836
$5,918
$6,254
$1,540
$4,378
Six months ago, you purchased 2,200 shares of ABC stock for $27.49 a share. You have received dividend payments equal to $0.70 a share. Today, you sold all of your shares for $29.48 a share. What is your total dollar return on this investment?
Explanation / Answer
Gross return ( 2200 shares × $29.48 ) = $64,856
Less : Total investment
( 2200 Shares × $27.49) = ( 60,478)
Profit from stock sales = $ 4378
Add : Dividend
( 2200 shares × $ 0.70 per share × 6mths) = $9240
Total return from of this investment = $13,618
( i.e profit from sale of stock+ dividend )
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