One year ago, Marcus purchased 400 shares of Maverick Data stock for $21,052. Today, he sold those shares for $56.00 per share. What is the total return on this investment if the dividend yield is 1.9 percent

Respuesta :

The total return on the investment made by Marcus one year ago is $1,348 or 6.4%.

What is the total return on investment?

The total return on the investment is the gain or profit that the stockholder obtains when the shares are sold.

The total return can be computed by determining the sales proceeds from which the cost of the investment is subtracted.

The total return on the investment can be computed as a percentage of the total investment cost as follows.

Data and Calculations:

Cost of 400 shares = $21,052

Selling price per share = $56

Dividend yield = 1.9%

Sales proceeds = $22,400 ($56 x 400)

Total returns = $1,348 ($22,400 - $21,052)

Total returns in percentage = 6.4% ($1,348/$21,052 x 100)

Thus, the total return on investment made by Marcus is $1,348, or 6.4%.

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