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26 November, 16:44

You purchased 1,450 shares of stock in Natural Chicken Wings, Inc., at a price of $43.64 per share. Since you purchased the stock, you have received dividends of $1.13 per share. Today, you sold your stock at a price of $47.82 per share. What was your total percentage return on this investment?

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  1. 26 November, 19:55
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    12.17%

    Explanation:

    The computation of total percentage return is shown below:

    (Dividend per share + Capital gain per share) : Initial investment OR Purchase per share)

    Where

    Capital gain per share = (Sale price per share - Purchase price per share)

    = ($47.82 - $43.64 + $1.13) : $43.64)) * 100

    = $5.31 : $43.64 * 100

    = 0.121677 * 100

    = 12.17%

    Therefore for computing the total percentage return we simply applied the above formula.
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