Question

One year ago, you purchased 380 shares of Titan Wood Products for $65.03 per share. The stock has paid dividends of $.73 per share over the past year and is currently priced at $70.10. What is your total dollar return on your investment?

Answer 1

Titan Wood Products
Total dollar return on the investment
Dividends for the year(0.73*380)	277.40
Holding period appreciation in value(70.10-65.03)*380	1926.60
Total dollar return on the investment	2204.00
	(ANS.)
To express Holding period return(HPR) as a%
Initial invetsment(380*65.03)	24711.40
HPR%=
(277.40+1926.60)/24711.4=
8.92%
Even on a per share basis, we will get the same return %
ie.
((70.1-65.03)+0.73)/65.03=
8.92%