FedEx Corp stock ended the previous year at $113.39 per share. It paid a $0.40 per share dividend last year. It ended last year at $126.69. If you owned 300 shares of FedEx, what was your dollar return and percent return?
A) $3,990; 11.73%
B) $4,110; 12.08%
C) $4,250; 12.29%
D) $2,009; 9.13%

Question

Quizplus · Accepted Answer

To calculate the dollar return, we need to first find out the capital gain on the 300 shares. The capital gain is (126.69 - 113.39) * 300 = $4,007. To this, we add the dividend income of $0.40 per share * 300 shares = $120. Thus, the total dollar return is $4,127.

To calculate the percentage return, we divide the dollar return by the initial investment and multiply by 100. The initial investment was 300 shares * $113.39 per share = $34,017. So, the percentage return is (4,127/34,017) * 100 = 12.08%.

Therefore, the best choice is B, which is the closest to our calculated values.

FedEx Corp Stock Ended the Previous Year at $113