One year ago, Peyton purchased 3,600 shares of Broncos stock for $101,124. Today

Question

One year ago, Peyton purchased 3,600 shares of Broncos stock for $101,124. Today, he sold those shares for $26.60 a share. What is the total return on this investment if the dividend yield is 1.9 percent?

-3.98 percent

-3.40 percent

-2.29 percent

1.10 percent

3.40 percent

Is this a negative growth stock? How do i calculate it.

  

     

-3.98 percent

     

     

-3.40 percent

     

     

-2.29 percent

     

     

1.10 percent

     

     

3.40 percent

Is this a negative growth stock? How do i calculate it.

  

Explanation / Answer

total return on this investment = (selling price - purchasing price + Dividend)/ purchasing price

here, dividend = 101,124* 0.019 = $1921.36

so,total return on this investment =[(26.60*3600 - 101,124) + 101,124* 0.019] / 101,124

= - .034

so - 3.4 %

yes,this is a negative growth stock.

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