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1 September, 05:42

Four months ago, you purchased 900 shares of LBM stock for $7.68 a share. Last month, you received a dividend payment of $0.12 a share. Today, you sold the shares for $9.13 a share. What is your total dollar return on this investment?

a. $1,305

b. $1,413

c. $1,512

d. $1,394

e. $1,080

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  1. 1 September, 06:12
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    b. $1,413

    Explanation:

    Total Purchase Value = 900 x $7.68 = $6,912

    Dividend received = 900 x 0.12 = $108

    Total Purchase Value = 900 x $9.13 = $8,217

    Total return on share = Dividend received + Gain on sale of shares

    Total return on share = $108 + (8,217 - 6,912)

    Total return on share = $108 + $1,305

    Total return on share = $1,413
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