Total return on investment


Problem:

One year ago, Theresa purchased 600 shares of Outland Co. stock for $3,600. The stock does not pay any regular dividends but it did pay a special dividend of $0.25 a share last week. This morning, she sold her shares for $7.25 a share.

Required:

Question: What was the total return on this investment?

  • 18.00 percent
  • 20.83 percent
  • 22.50 percent
  • 25.00 percent
  • 27.33 percent

Note: Explain in detail.

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Accounting Basics: Total return on investment
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