Posted by Francine on .
Mrs. Butler bought 1,800 shares of Stairwell Mutual Fund at an offer price of $3 per share. She later sold the shares at a net asset value of $4.60 per share.During the time Mrs. Butler owned the shares, Stairwell Mutual Fund paid a dividend of $0.80 per share.What is Mrs. Butler's return on investment?
She paid $3 per share
She got 4.6 + .8 = $5.40 per share
so she gained $5.4 - 3 = $2.40 per share
Her percentage gain was 2.4/3 * 100 = 80% return. That .8 as a fraction or 80% as a percentage is the return on investment
Her amount of gain is 2.4*1800 = $4,320