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You purchased Butterfly Wing Corp. stock exactly one year ago at a price of $77.66 per share. Over the past year, the stock paid dividends of $2.92 per share. Today, you sold your stock and earned a total return of 15.84 percent. What was the price at which you sold the stock

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Kolawole845

Answer:

The shares were  bought at a price of  $26.981

Explanation:

The price of the share be represented as "y "

Capital gain= ( y - 77.6)

Dividend = 2.92

Total return in dollar =  ( y - 77.6)+ 2.92

total return in %= 15.84%

Return (%) =   (( y -77.6)+ 2.92)/77.66= 15.84%

(( y -77.6)+ 2.92)/77.66= 0.1584

cross multiplying

(( y -77.6)+ 2.92)=77.66 × 0.1584

y -14.68 = 12.301344

Collecting like terms

y =26.98

The shares were  bought at a price of  $26.981