Investment Return Rx Corp.stock was $60.00 per share at the end of last year.Since then,it paid a $1.00 per share dividend last year.The stock price is currently $62.50.If you owned 400 shares of Rx,what was your percent return?
A)1.67 percent
B)4.17 percent
C)5.60 percent
D)5.83 percent

Question

Quizplus · Accepted Answer

To calculate the percent return, we need to consider both the change in stock price and any dividends received.

The change in stock price is: 
(62.50 - 60.00) / 60.00 = 0.0417 or 4.17%

The dividend received is: 
400 shares x 1.00 dividend per share = $400

To calculate the percent return, we need to add the change in stock price and the dividend received, then divide by the original stock price: 
(0.0417 + 400) / 60.00 = 0.0583 or 5.83%

Therefore, the correct answer is D) 5.83 percent.