Personal Finance 1st Edition by Jack R. Kapoor

Exercise 16

Calculating Total Return. Tammy Jackson purchased 100 shares of All-American Manufacturing Company stock at $31.50 a share. One year later, she sold the stock for $38 a share. She paid her broker a $15 commission when she purchased the stock and a $29 commission when she sold it. During the 12 months she owned the stock, she received $160 in dividends. Calculate Tammy’s total return on this investment.

Step 1 of 4

Commission paid at the time of Purchase- $15

To find the total cost of investment, add the commission paid at the time of purchase of shares to the purchase cost.