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One year ago, Norbert Wagner purchased 30 shares of DUX Inc., stock for $20 per share. During the last year, DUX Inc., experienced strong earnings and paid dividends of $0.50 per share. Norbert just sold the stock for $19 per share.Ignoring taxes, Norbert’s return from investing in DUX Inc., was"A. 7.50%B. -2.50%C. -5.00%D. 7.89%

Respuesta :

Answer:

option (B) -2.50%

Explanation:

Data provided in the question:

Number is shares purchased = 30

Purchasing price = $20 per share

Dividend paid = $0.50 per share

Selling price of the shares = $19 per share

Now,

Total investment = 30 × $20

= $600

Total sales value = 30 × $19

= $570

Total dividend Received = 30 × $0.50

= $15

Thus,

Rate of Return from Investment

= [ { Sales - Investment + Dividend Received} ÷ Purchase Price] × 100%

= [ { $570 - $600 + $15 } ÷ $600] × 100 %

= [ -$15 ÷ $600 ] × 100 %

= - 2.50%

Hence,

The correct answer is option (B) -2.50%

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