Personal Finance 1st Edition by Jack R. Kapoor

Exercise 20

Calculating Total Return. Marie and Bob Houmas purchased 200 shares of General Electric stock for $23 a share. One year later, they sold the stock for $31 a share. They paid their broker a $32 commission when they purchased the stock and a $41 commission when they sold it. During the 12 months they owned the stock, they received $152 in dividends. Calculate the total return on this investment.

Step 1 of 5

Calculation of Total Return of Mr. MB on selling his shares:

Total Cost of Investment:

The purchase cost is computed by multiplying the number of shares purchased and the price per share.