Ask Question
1 April, 16:40

At the beginning of the year, your neighbor bought 250 shares of Nu-Tek Corporation and paid $104.32 per share. The share price at the end of the year was $193.65. During the year, your neighbor received a dividend payment from Nu-Tek of $2.34 per share. What was your neighbor's dollar return on this investment? (Do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.)

+4
Answers (1)
  1. 1 April, 16:50
    0
    Return on investment = 87.87 %

    Explanation:

    Dollar return on investment is the sum of the capital gains and the dividend received all expressed as a percentage of the cost of the investment.

    Total cost = 250*104.32=26,080

    Total capital gain = (193.65 - 104.32) * 250 = 22,332.5

    Dividend = $2.34 per share*250 = 585

    Dollar return on Investment = (585 + 22,332.5) / 26080 * 100

    = 87.87 %
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “At the beginning of the year, your neighbor bought 250 shares of Nu-Tek Corporation and paid $104.32 per share. The share price at the end ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers