Assuming you purchased a share of stock for $50 one year ago, sold it today for $60,

Question:

Assuming you purchased a share of stock for $50 one year ago, sold it today for $60, and during the year received 3 dividend payments totaling $2.70, calculate the following.

a. Income

b. Capital gain (or loss)

c. Total return

(1) In dollars

(2) As a percentage of the initial investment

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...