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Eight months ago, you purchased 400 shares of Winston, Inc. stock at a price of $56.90 a share. To date the company has paid quarterly dividends of $.55 a share twice. Today, you sold all of your shares for $49.40 a share. What is your total percentage return on this investment

Sagot :

anthougo

Answer:

Shares of Winston, Inc. Stock

The total percentage return on this investment is:

= -11.25%

Explanation:

a) Data and Calculations:

Purchase cost = $22,760 (400 * $56.90)

Quarterly dividends received = $440 (400 * $0.55) * 2

Sales price = $19,760 (400 * $49.40)

Total cash receipts from the investment = $20,200 ($440 + $19,760)

Total returns from the investment = -$2,560

Total percentage return on the investment = -$2,560/$22,760 * 100

= -11.25%

b) There is a loss of value on the investment amounting to $2,560, which is 11.25%.  The investment actually yielded a negative return.

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