### Investment Return Calculation**Question:**Suppose you invested $56 in the iShares Dividend Stock Fund (DVY) a month ago. It paid a dividend of $0.80 today and then you sold it for $67. What was your return on the investment?**Options:**- A. 23.18%- B. 16.86%- C. 14.75%- D. 21.07%---To find the return on investment (ROI), you can use the following formula:\[ \text{ROI} = \left( \frac{\text{Final Value} - \text{Initial Investment} + \text{Dividends}}{\text{Initial Investment}} \right) \times 100 \]Given:- Initial Investment = $56- Final Value (Selling Price) = $67- Dividends received = $0.80\[ \text{ROI} = \left( \frac{67 - 56 + 0.80}{56} \right) \times 100 \]\[ \text{ROI} = \left( \frac{11.80}{56} \right) \times 100 \]\[ \text{ROI} = 0.2107 \times 100 \]\[ \text{ROI} = 21.07\% \]**Correct Answer:**- D. 21.07%### Explanation:The return on investment in this context includes the gain from selling the stock as well as the dividend received. By substituting the given figures into the ROI formula, we find that the correct percentage return on the investment is 21.07%.

Return on Investment = Total Profit from Investment / cost of Investment

Answered: Suppose you invested $56 in the Ishares…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Suppose you invested $56 in the Ishares Dividend Stock Fund (DVY) a month ago. It paid a dividend of $0.80 today and then you sold it for $67. What was your return on the investment? OA. 23.18% OB. 16.86% O C. 14.75% OD. 21.07%