You buy one share of stock at $30.00, hold it for one year and sell it for $40. IF you receive $2.50 in dividends, what is your return on investment?

To calculate the return on investment (ROI), you need to consider both the capital gain (the increase in the stock price) and the dividends received.

Step 1: Calculate the capital gain
The capital gain is the difference between the selling price and the buying price:
Capital Gain = Selling Price - Buying Price

In this case:
Buying Price = $30.00
Selling Price = $40.00

Capital Gain = $40.00 - $30.00 = $10.00

Step 2: Calculate the total dividend received
In this case, you received $2.50 in dividends.

Step 3: Calculate the ROI
The ROI is calculated by dividing the total gain (capital gain + dividends) by the initial investment (buying price):

ROI = (Capital Gain + Dividends) / Buying Price

In this case:
Capital Gain = $10.00
Dividends = $2.50
Buying Price = $30.00

ROI = ($10.00 + $2.50) / $30.00

ROI = $12.50 / $30.00

ROI = 0.4167...

Converting to a percentage:
ROI = 0.4167... * 100%

ROI = 41.67%

Therefore, your return on investment (ROI) for this stock investment is 41.67%.