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 percentage rate of return?
A) 20%
B) 25%
C) 45%
D) 125%
E) 145%

Question

Quizplus · Accepted Answer

The initial investment was 100 shares at $20 each, totaling $2,000. The end value of the stock was $2,500, and dividends received were $400. The total gain is $2,500 (final value) + $400 (dividends) - $2,000 (initial investment) = $900. The percentage rate of return is ($900 / $2,000) * 100% = 45%.

You Bought 100 Shares of Stock at $20 Each