An investor purchased 100 shares of stock for $70 per share, received an annual dividend?

Question

of $0.60 per share, and sold the stock for $80 per share after one year. What is the total return on this investment?

a. $,1,000

b. $1,060

c. $7,000

d. $8,000

Answer 1

b.

It would be a. if you failed to consider the dividend.

It would be d. if you failed to remember that you BOUGHT the stock!  *laughter*

Answer 2

the answer would be B.  he made 10 dollars a share selling it for 1000 dollars and his dividend was .60 cents a share for 60 dollars. 1000 plus 60 is 1060.

Answer 3

1060.........100 shares x $10 gain=1000

60c x 100 shares= $60.

Answer 4

b

Answer 5

b is the total return.  For taxes he would pay tax on a dividend of $60 and a long term capital gains tax on $1000.

He made $1060 total on his $7000 investment or 15%.