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You purchased 1,400 shares of Barrett Golf Corp. stock at a price of $19.00 per share. While you owned the stock, you received dividends totaling $0.55 per share. Today, you sold your stock at a price of $21.00 per share. What was your total dollar return on the investment?

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sandlee09

Answer:

$3,570

Explanation:

We can calculate this by first totaling the different gains and then adding them together. The first type of gain would be from the dividend payments, which since they total $0.55 per share we simply multiply this value by the total number of shares.

$0.55 * 1,400 = $770

The next gain that was obtained was from selling at a higher price than at what the shares were purchased. You sold at a $2 per share profit ($21 - $19)...

$2.00 * 1,400 = $2,800

Now that we have both types of gains we simply add them together to find the total dollar value return

$770 + $2,800 = $3,570