Ask Question
10 February, 17:46

Eight months ago, you purchased 400 shares of Winston stock at a price of $46.40 a share. The company pays quarterly difidents of $1.05 a share. Today, you sold all of your shares for $48.30 a share. What is your total percentage return on this investment

+1
Answers (2)
  1. 10 February, 18:08
    0
    Percentage return on investment = 8.62 %

    Explanation:

    Return on investment is the amount that an investor gains after investing in a particular business venture. Percentage return on investment is calculated as gain from a business venture divided by the initial investment.

    Percentage return on investment = (Gain : Initial investment) * 100

    Gain on share price = 48.30 - 46.40 = $1.90

    Gain from dividend = 2 * 1.05 = $2.10

    Total gain = 1.90 + 2.10 = $4

    Therefore

    Percentage return on investment = (4 : 46.40) * 100

    Percentage return on investment = 8.62 %

    So the gain on initial investment of the 400 shares is 8.62%
  2. 10 February, 19:15
    0
    The total percentage return on this investment is 8.62%

    Explanation:

    Given the initial investment is 400 shares * 46.40 = $18,560 and the purchase of those shares were "eight month ago"

    The company pays quarterly dividends of $1/05 per share. So, that in between 8 month, these are 2 Quarters

    Thus Dividend amount = 400 * 1.05 * 2 Quarters = $840

    Capital gains = Sales value - Purchase price

    = 400 * 48.30 - 18,560

    = 19,320 - 18,560

    = $760

    Therefore total percentage return on this investment will be derived by (Dividend + Capital) / Initial Investment * 100

    = (840 + 760) / 18560 * 100

    = 8.62%
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Eight months ago, you purchased 400 shares of Winston stock at a price of $46.40 a share. The company pays quarterly difidents of $1.05 a ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers