Six months ago, you purchased 2,300 shares of ABC stock at $28.08 per share. You have received dividend payments of $0.80 per share. Today, you sold all your shares at $30.07 per share. What is your total dollar return on this investment?

Business · College · Thu Feb 04 2021

Answered on

To calculate the total dollar return on your investment in ABC stock, you need to consider both the capital gains (or losses) from the sale of the stock and the dividends received.

1. First, calculate the initial investment for purchasing the shares: 2,300 shares x $28.08/share = $64,584

2. Then, calculate the total dividend income received: 2,300 shares x $0.80/share = $1,840

3. Now, calculate the total amount received from selling the shares: 2,300 shares x $30.07/share = $69,161

4. The capital gain (or loss) is calculated by subtracting the initial investment from the amount received from selling the shares: $69,161 (amount received from selling the shares) - $64,584 (initial investment) = $4,577 capital gain

5. Finally, add the capital gain to the dividend income to find the total dollar return on the investment: $4,577 (capital gain) + $1,840 (dividend income) = $6,417 total dollar return

So the total dollar return on the investment in ABC stock is $6,417.

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