Asked by Nomzamo Lubisi on May 03, 2024

verifed

Verified

A year ago, you purchased 300 shares of IXC Technologies, Inc. stock at a price of $9.03 per share. The stock pays an annual dividend of $.10 per share. Today, you sold all of your shares for $28.14 per share. What is your total dollar return on this investment?

A) $5,703
B) $5,733
C) $5,753
D) $5,763
E) $5,853

Annual Dividend

The total dividend payments a company makes to its shareholders over a single fiscal year, often expressed as an amount per share.

Total Dollar Return

The overall financial return on an investment, including dividends, interest, and capital gains, measured in dollar terms.

Shares

Represent units of ownership in a company or financial asset, granting the holder a part of the corporation's assets and profits.

  • Learn to comprehend and figure out the total profit from investments.
verifed

Verified Answer

ZK
Zybrea KnightMay 05, 2024
Final Answer :
D
Explanation :
The total dollar return on the investment includes both the capital gains and the dividends received. The capital gain per share is the selling price minus the purchase price, which is $28.14 - $9.03 = $19.11. For 300 shares, the total capital gain is 300 * $19.11 = $5,733. The total dividend income is the annual dividend per share times the number of shares, which is $0.10 * 300 = $30. Therefore, the total dollar return is the sum of the capital gain and the dividend income, which is $5,733 + $30 = $5,763.