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4 December, 04:59

One year ago, you purchased 100 shares of best wings stock at a price of $49.65 a share. the company pays an annual dividend of $.64 per share. today, you sold for the shares for $43.30 a share. what is your total percentage return on this investment?

a. - 13.19 percent

b. - 9.10 percent

c. 2.72 percent

d. 14.08 percent

e. - 11.50 percent

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  1. 4 December, 05:21
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    To get the total percentage return, subtract first the value of the shares bought from the total selling price and add the dividend value.

    Shares bought: $49.65 x 100 = $4,965

    Total selling price: $43.30 x 100 = $4,330

    Dividend: $.64 x 100 = $64

    Return: $4,330 - $4,965 + 64 = - $571

    Note that the value is negative, it means that there’s loss.

    To get the percentage, divide the loss to the value of the shares bought.

    Percentage = - $571 / $4,965 = - 0.1150 or e.) - 11.50%
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