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17 March, 13:03

One year ago, you purchased a stock at a price of $32.50. The stock pays quarterly dividends of $.40 per share. Today, the stock is worth $34.60 per share. What is the total dollar return per share to date from this investment?

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  1. 17 March, 13:30
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    The total dollar return per share is 11% or $3.7

    Explanation:

    Total dollar return = (Selling price - buying price + total dividend) / buying price.

    The buying price is 32.50

    The selling price = 34.60

    The total dividends are 0.4*4=1.6 because in 1 year there will be 4 quarterly dividends.

    Now we input these numbers in a formula

    (34.60-32.50+1.6) / 32.50=0.11

    = 11%

    In dollar terms the return is

    34.60-32.50+1.6=3.7
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