You bought 100 shares of stock at $20 each. At the end of the year, you received a total of $400 in dividends, and your stock was worth $2,500 total. What was your total dollar return?
A) $900.
B) $500.
C) $400.
D) $2,500.

Question

Quizplus · Accepted Answer

Your total dollar return is the sum of the dividends received and the capital gain. The initial investment was 100 shares at $20 each, totaling $2,000. At the end of the year, the stock was worth $2,500, and you received $400 in dividends. The capital gain is $2,500 - $2,000 = $500. Therefore, the total dollar return is $500 (capital gain) + $400 (dividends) = $900.

You Bought 100 Shares of Stock at $20 Each