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    Return on Investment

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    1 year ago I purchased 150 shares of common stock for $30 per share. During the year I noticed that the value of the stock decreased to $22.50 per share. If the stock paid a dividend of $0.80 during the year, what is the return on the investment? Please provide me step by step instructions on how to solve this problem.

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    Solution Preview

    Sorry, it is $4500

    Hi, here is the solution...

    Capital amount = Number of stocks x price per stock

    = 150 x 30

    Capital amount = $4500

    During that period the stock price decreased to $22.50 per share.

    So the loss per ...

    Solution Summary

    This solution is comprised of a detailed explanation to answer what is the return on the investment.