Question

I am unsure how to figure out this question please explian

Mr Jones bought 1,8000 shares of Hampstead Mutual Fund at an offer price of $3 per share He later sold the shares at a net asset value of $4.60 per share During this time Mr Smith owned the shares, Hampstead Mutual paid a dividend of $0.80 per share. how do I figure out Mr Smith's return on his investement I have to show all of my work

Thank you for any help :)

Answer 1

1800 * $3 = $5400 -- amount he paid

1800 * $4.6 = $8200 -- amount he sold it for

1800 * $0.8 = $1440 -- dividends

Adding the sale price to the dividends -- $8200 + 1440 = $9640

Next -- subtract the amount he paid from the amount he made -- $9640 - $5400 = $4240

4240/5400 = 0.785 = 78.5% = his return on his investment