3. Starbucks Coffee was selling for $57.12 per share eighteen months ago and you purchased 250 shares. You sold your shares last week for $68.38 per share. How much profit did you make on the sale? Explain your answer.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Number 3
.|. 1 2
1.510,483.50
2. I calculated the profit by subtracting $47.75 from $62.25, which equals $14.50. Then
multiplied $14.50 and 723 which equals $10,483.50.
2. During the year you own Nike stock you earn a dividend of $ 1.25 per share. You
own 720 shares. How much did you earn in dividends? How did you arrive at your
Answer?
1.$900.00
2| multiplied the 720 by $1.25 which equaled $900.
3. Starbucks Coffee was selling for $57.12 per share eighteen months ago and you
purchased 250 shares. You sold your shares last week for $68.38 per share. How
much profit did you make on the sale? Explain your answer.
4. You own 100 shares in each of three companies. Each company pays a dividend.
Gillette pays $1.15 per share in dividends. General Electric pays $.79 per share in
dividends. Hershey Foods pays $.84 per share in dividends. How much do you
collect in dividends from all three companies? Explain how you got your answer.
5. Using the information from questions #1 and #3, what was your total profit from
DELL
C
Transcribed Image Text:.|. 1 2 1.510,483.50 2. I calculated the profit by subtracting $47.75 from $62.25, which equals $14.50. Then multiplied $14.50 and 723 which equals $10,483.50. 2. During the year you own Nike stock you earn a dividend of $ 1.25 per share. You own 720 shares. How much did you earn in dividends? How did you arrive at your Answer? 1.$900.00 2| multiplied the 720 by $1.25 which equaled $900. 3. Starbucks Coffee was selling for $57.12 per share eighteen months ago and you purchased 250 shares. You sold your shares last week for $68.38 per share. How much profit did you make on the sale? Explain your answer. 4. You own 100 shares in each of three companies. Each company pays a dividend. Gillette pays $1.15 per share in dividends. General Electric pays $.79 per share in dividends. Hershey Foods pays $.84 per share in dividends. How much do you collect in dividends from all three companies? Explain how you got your answer. 5. Using the information from questions #1 and #3, what was your total profit from DELL C
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