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Calculation of dollar return after dividend payment

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Suppose you bought 100 shares of stock at an initial price of $73 per share. The stock paid a dividend of $0.88 per share during the following year and the share price at the end of the year was $82.

Compute your total dollar return on this investment.

Does your answer change if you keep the stock instead of selling it?

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Solution Summary

This provides the steps to calculate the dollar return after dividend payment

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Total dollar return on this investment= Dividend+Capital gain
=100*(0.88+ (82-73))
=$988

If ...

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