Calculation of Mei Ting’s Return on Investment (ROI)
Given Data:
Number of Shares: 3000
Purchase Price per Share: RM1.36
Selling Price per Share: RM1.56
Dividend per Share: RM0.05 (5 sen)
Transaction Costs: RM49.92

To calculate Mei Ting’s Return on Investment (ROI), we'll follow these steps:

### Step 1: Calculate the Total Investment (Initial Cost)
\[
\text{Total Investment} = \text{Number of Shares} \times \text{Purchase Price per Share} + \text{Transaction Costs}
\]
\[
\text{Total Investment} = 3000 \times 1.36 + 49.92 = 4080 + 49.92 = \text{RM}4129.92
\]

### Step 2: Calculate the Total Return
The total return includes the selling price of the shares plus the dividends received.
\[
\text{Total Return} = (\text{Number of Shares} \times \text{Selling Price per Share}) + (\text{Number of Shares} \times \text{Dividend per Share})
\]
\[
\text{Total Return} = (3000 \times 1.56) + (3000 \times 0.05) = 4680 + 150 = \text{RM}4830
\]

### Step 3: Calculate the Net Profit
\[
\text{Net Profit} = \text{Total Return} - \text{Total Investment}
\]
\[
\text{Net Profit} = 4830 - 4129.92 = \text{RM}700.08
\]

### Step 4: Calculate the ROI
\[
\text{ROI} = \left(\frac{\text{Net Profit}}{\text{Total Investment}}\right) \times 100\%
\]
\[
\text{ROI} = \left(\frac{700.08}{4129.92}\right) \times 100\% \approx 16.95\%
\]

### Conclusion
Mei Ting’s Return on Investment (ROI) is approximately **16.95%**.

Would you like further details or have any questions?

### Relative Questions:
1. What would the ROI be if the selling price per share were RM1.60?
2. How does changing the dividend affect the ROI?
3. What is the break-even selling price for Mei Ting?
4. How would an increase in transaction costs impact the ROI?
5. What if the number of shares was increased to 4000?
6. What is the impact of reducing the purchase price per share on ROI?
7. How would the ROI change if no dividends were paid?
8. What is the maximum ROI Mei Ting can achieve with these conditions?

### Tip:
Always account for transaction costs when calculating ROI, as they directly affect the net profit and the overall return.

Learn how to calculate Mei Ting’s Return on Investment (ROI) with detailed steps. Includes formulas and calculations for total investment, total return, net profit, and ROI. Suitable for financial analysis and understanding investment returns.

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