A year ago, you purchased 300 shares of Stellar Wood Products, Inc. stock at a price of $8.62 per share. The stock pays an annual dividend of $0.10 per share. Today, you sold all of your shares for $4.80 per share. What is your total dollar return on this investment? A. - $382 B. - $1,372 C. - $1,528 D. - $1,116 E. - $1,360

D. - $1,116

Explanation:

Total amount of purchase = number of shares * price per share

= 300 * $8.62

= $2,586

Total dividends received = number of shares * dividend per share

= 300 * $0.10

= $30

Total proceeds from sale of shares = number of shares sold * price per share

= 300 * $4.80

= $1,440

Total dollar return = (Total proceeds from sale of shares + Total dividends received - amount of purchase)

= $1,440 + $30 - $2,586

= - 1,116