Investment Return MedTech Corp.stock was $50.95 per share at the end of last year.Since then,it paid a $0.45 per share dividend.The stock price is currently $62.50.If you owned 500 shares of MedTech,what was your percent return?
A)7.20 percent
B)8.83 percent
C)22.67 percent
D)23.55 percent

Question

Quizplus · Accepted Answer

To calculate the percent return, we need to consider both the change in stock price and the dividend payment.

First, we calculate the total amount of dividends received:

$0.45 dividend per share x 500 shares = $225 in dividends

Next, we calculate the change in stock price:

Current stock price - End of year stock price = $62.50 - $50.95 = $11.55 increase

Now we can calculate the percent return:

[($225 in dividends + $11.55 increase in stock price) / ($50.95 end of year stock price x 500 shares)] x 100% = 23.55%

Therefore, the correct answer is D.