You purchase 100 shares of a stock at $50 per share and sell themone year later for $60 per share. During the year, you also receivedividends of $2 per share. What is your total return on theinvestment?A. 12%B. 20%C. 24%D. 32%

Explanation of Initial Investment:The initial investment is the total amount of money spent to…

Answered: You purchase 100 shares of a stock at…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter7: Common Stock: Characteristics, Valuation, And Issuance

Section: Chapter Questions

Problem 5P

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Say you bought 100 shares of Harasser Flasher Inc. on margin for $100 per share. If the stock price increased to $110, what would your return on the investment be? A. 10% B. 40% C. 20% D. 15%

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You purchase 100 shares of a stock at $50 per share and sell them one year later for $60 per share. During the year, you also receive dividends of $2 per share. What is your total return on the investment? A. 12% B. 20% C. 24% D. 32%