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One year ago, you purchased 100 shares of Best Wings stock at a price of $38.19 a share. The company pays an annual dividend of $.46 per share. Today, you sold for the shares for $37.92 a share. What is your total percentage return on this investment?

Respuesta :

jepessoa

Answer:

The answer is: the rate of return is 0.5%

Explanation:

First of all, we have to determine the total cash flow:

  • cash flow 0 $37.92 + $0.46 = $38.38
  • initial investment = $38.19

To determine the rate of return of this investment, we should:

rate of return = [(cash flow / initial investment) -1] x 100%

rate of return = [($38.38 / $38.19) - 1] x 100% = (1.005 - 1) x 100%

rate of return = 0.005 x 100% = 0.5%

Nonicorp1

Answer:

The percentage rate of return=0.5%

Explanation:

Initial value of shares when you bought the stock=100 shares each at $38.19

The total initial value of the shares=(100×38.19)=$3819

Total final value when you sold the stock= 100 shares each for $37.92+an annual dividend of $.46 a share for 1 year

(37.92×100)+(0.46×100)=$3838

Percentage rate of return=((Final value-Initial value)/(Initial value))×100

((3838-3819)/(3819))×100=(19/3819)×100=0.50%

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