Question

You purchased 1900 shares of stock in Natural Chicken Wings Inc. at a price of 43.91 per share. Since you purchased the stock, you have received dividends of 1.31 per share. Today you sold your stock at a price of 48.78 per share. What was your total percentage return on this investment

Answer 1

Number of Shares Purchased = 1900

Purchasing Price per Share = $ 43.91

Total Investment = Number of Shares Purchased * Purchasing Price per Share

= 1900 * $ 43.91

= $ 83429

Dividends per Share = $ 1.31

Total Dividends = Number of Shares Purchased * Dividends

= 1900 * $ 1.31

= $ 2489

Selling Price per Share = $ 48.78

Revenue from Selling Shares = Number of Shares Purchased * Selling Price per Share

= 1900 * $ 48.78

= $ 92682

Total Revenue = Revenues from Selling Shares + Total Dividends

= $ 92682 + $ 2489

= $ 95171

= [ ( $ 95171 - $ 83429) / $ 83429 ] * 100

= [ $ 11742 / $ 83429 ] * 100

= 0.1407 * 100

= 14.07 %