Question

You bought a stock on January 1 for $39.00 per share, and you sold it on...

You bought a stock on January 1 for $39.00 per share, and you sold it on December 31 for $47.00 per share. During the year, you received annual dividends of $3.00. What was your total return on this investment for the year?

  • A. 4.2%
  • B. 12.2%
  • C. 28.2%
  • D. 33.3%
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Answer #1

The total return is computed as shown below:

= (Selling price - purchase price + dividend received) / purchase price

= ($ 47 - $ 39 + $ 3) / $ 39

= 28.2% Approximately

So, the correct answer is option C.

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