Question
Wanda Sotheby purchased 215 shares of Home Depot stock at $45 a share. One year later, she sold the stock for $53 a share. She
Wanda Sotheby purchased 215 shares of Home Depot stock at $45 a share. One year later, she sold the stock for $53 a share. She paid her broker a commission of $53 when she purchased the stock and a commission of $60 when she sold it. During the 12 months she owned the stock, she received $156 in dividends. Calculate Wandas total return on this investment. (A loss should be indicated by a minus sign.)
P.S! the answer is not 18 and I have been unable to get a negative answer as the problem requires.
Number of shares-215
Price per share-$45
Sales Price-$53
Brokerage on purchase-$53
Brokerage on sale-$60
156 dividends
(215*45)+53=$9,728
(215*53)-60=11,335
11,335-9728+156/11,335= .15.55=15.55%
Also it is not 18.73%
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started