**Educational Content: Calculating Dollar Gains from Stock Transactions****Scenario:**You purchased 1 share of Google for $1,524.05 on March 4 and sold it one week later for $1,565.06. Assuming no dividends were paid, your dollar gain was:**Options:**- A. Zero- B. $15.16- C. $41.01- D. $92.74- E. $565.06**Analysis:**To calculate the dollar gain from the transaction:1. Subtract the purchase price from the selling price.2. Selling Price: $1,565.063. Purchase Price: $1,524.054. Dollar Gain = $1,565.06 - $1,524.05 = $41.01Thus, the correct answer is **C. $41.01**. This example demonstrates basic principles of investment returns, focusing on the difference between the initial purchase price and the selling price of a stock.

Information Provided: Purchase price = $1524.05 Selling price = $1565.06

Answered: You bought 1 share of Google for…

You bought 1 share of Google for $1,524.05 on March 4 and sold it one week later for $1,565.06. Assuming no dividends were paid, your dollar gain was:

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

See similar textbooks

Related questions

Q: Holtzman Clothiers's stock currently sells for $38.00 a share. It just paid a dividend of $1.25 a…

A: Given, P0 =$38 D0=$1.25 g =5%

Q: You purchased some shares in FlyingDutchman.com on 26 August 2022, at price $54.86. On 28 January…

A: Given, The purchase price of stock is $54.86. Dividends paid $1.69 and $1.93

Q: rate

A: Formula to calculate rate of return on shares is: Ending value of investment - Beginning value of…

Q: On 3/30/22 you purchased 1 share of Ford Motor company for $9. On 7/1/22 you received a dividend of…

A: The actual rate of return on an investment or a group of investments over a specified evaluation…

Q: Albert Einstein purchased a stock last year and sold it today for $4 a share more than his purchase…

A: Total return = Dividend yield + Capital gain yield ---------------------- Formula for capital gain…

Q: Save Answer 1. On July 22, 2015 Peter purchased 30 shares of XYZ Inc. stock at $149.73 per share On…

A: Total number of shares=30Purchase price per share=$149.73Selling price per…

Q: You bought a stock one year ago for $51.46 per share and sold it today for $57.76 per share. It palu…

A: Total return from a stock is divided into two components. The first one is due to the dividend…

Q: ou purchased 850 shares of Sea Inc. common stock one year ago for $47 per share. You received a…

A: Purchase price (PP) = $47 Dividend (D) = $1.35 Sale price (SP) = $52.50 Holding period return = ?

Q: You purchased stock of Blue McBrushes Corp one year ago for $85 and generated a total return of 20%…

A: Given:Original price (P0) = $85Selling price (P1) = $89.50Total return (R) = 20%

Q: You purchased 74 shares of Z stock in January 2008 for $40 per share. Each year you recelved a cash…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: You invested $12,396.22 in Hawkeye Hats, Inc. four years ago. You sold the stock today for…

A: Solution:Cumulative Annual Growth Rate is the constant rate which represents the average annual rate…

Q: Six months ago, you purchased 1,200 shares of ABC stock for $21.20 a share. You have received…

A: In the given case, we have provided the purchasing price (initial price) per share, selling price…

Q: If you purchased 100 shares of 3DTV for $4 per share and shares jumped to $50 per share, how much…

A: Given, 100 Shares purchased for $4

Q: You bought some shares of MJK at $200 per share. 8 years later, you sell these shares for $750.50…

A: The Effective Annual Rate (EAR), which is also referred to as the Annual Equivalent Rate (AER) or…

Q: You purchased some shares in Flying Dutchman.com on 12 August 2022, at price $67.41. On 09 November…

A: Given, The purchase price is $67.41 The dividends paid are $2.85 and $1.08.

Q: (Calculating rates of return) On December 17, 2007, the common stock of Google Inc. (GOOG)…

A: Solution:- Rate of return means the percentage of extra amount earned on initial amount invested.…

Q: Blaxo Balloons manufactures and distributes birthday balloons. At the beginning of the year Blaxo's…

A: The annual rate of return is the amount of return earned on the investment expressed in terms of…

Q: An investor purchased a stock one year ago for $83.00. It paid an annual cash dividend of $3.76…

A: The objective of the question is to calculate the total return earned by the investor and to…

Q: What was the total percentage return on this investment? Answer as a percentage (e.g. 0.01 is 1.0%)…

A: Total return refers to a method which shows the relationship between the total return and current…

Q: You bought a stock one year ago for $50.00 per share and sold it today for $55.00 per share. It…

A: Return from dividend yield can be calculated by using this equation Return from dividend yield =…

Q: You just purchased a share of Northstar Sports for $99.14. You expect to receive a dividend of $4.75…

A: In the given case, we have provided initial purchase price per share . It is the beginning price per…

Q: One year ago, your friend purchased 82shares of PantherCo. stock for $2,165.98. The stock does not…

A: Total return on investment will be the sum of gain on sale of shares and dividend received. Total…

Q: . One year ago, you bought a share for $36.48 a share. You received a dividend of $1.62 per share…

A: GIVEN÷ bought price of a share = $36.48 Sale price of share = $40.18

Q: Nancy Cotton bought 400 shares of NeTalk for $15 per share. One year later, Nancy sold the stock for…

A: The total rate of return earned from investment will be reflective of the rate of return through the…

Q: You bought a stock one year ago for $48.48 per share and sold it today for $56.08 per share. It paid…

A: We invest in stocks with an expectation to earn returns. The returns come from two main forms.…

Q: Blaxo Balloons manufactures and distributes birthday balloons. At the beginning of the year Blaxo's…

A: Given: Particulars Amount Beginning price $21.32 Ending price $20.17 Cash dividend $2.49

Q: Summer bought a share one year ago for RM20.00 per share and sold it today for RM27.50. The share…

A: Realized earning is that rate of return which is earned by the investor from his investment. It…

Q: The Andrews Company has just issued $7,066,031 in dividends last year. The effect of this payment on…

A: Balance sheet is one of the financial statement that shows list of final ending balances of assets,…

Q: Two years ago, you purchased 203 shares of IBM stock for $147 a share. Today, you sold your IBM…

A: Profit per share is the difference between the sale price per share and the purchase price per…

Q: You bought a stock one year ago for $50.09 per share and sold it today for $55.57 per share. It paid…

A: The return from an investment typically refers to the profit or loss generated by the investment…

Q: Did you make or lose money? How much did you make or lose

A: Ownership of an organization can be broken down into small parts or units also known as Shares.…

Q: You invested in RYURX and RYIHX which each had a loss on the year. RYURX had a year-to-date loss of…

A: let investment in RYURX be x 5% of x +7%(15,500-x) = 915 2% of x = 170 x = 170/2% = 8500 investment…

Q: You bought a stock one year ago for $51.79 per share and sold it today for $57.42 per share. It paid…

A: Solution:- Realized return means the percentage return of gains over the amount invested. So,…

Q: Byron Books Inc. recently reported $18 million of net income. Its EBIT was $37.2 million, and its…

A: Interest expense is the cost incurred for borrowing the fund. Interest is calculated on the…

Q: Six months ago, you purchased 3,000 shares of ABC stock for $47.06 a share. You have receiv payments…

A: Rate of return is the amount of money earned above the initial investment made by the investors.

Q: You bought a stock one year ago for $49.83 per share and sold it today for $59.22 per share. It paid…

A: The dividend amount that is paid to the investors by the company, represented in percentage form is…

Q: You bought a stock one year ago for $48.64 per share and sold it today for $59.21 per share. It paid…

A: When you invest in stocks then returns or gains from the investment can come in two forms. The first…

Question

**Educational Content: Calculating Dollar Gains from Stock Transactions**

**Scenario:**

You purchased 1 share of Google for $1,524.05 on March 4 and sold it one week later for $1,565.06. Assuming no dividends were paid, your dollar gain was:

**Options:**

- A. Zero
- B. $15.16
- C. $41.01
- D. $92.74
- E. $565.06

**Analysis:**

To calculate the dollar gain from the transaction:
1. Subtract the purchase price from the selling price.
2. Selling Price: $1,565.06
3. Purchase Price: $1,524.05
4. Dollar Gain = $1,565.06 - $1,524.05 = $41.01

Thus, the correct answer is **C. $41.01**.

This example demonstrates basic principles of investment returns, focusing on the difference between the initial purchase price and the selling price of a stock.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

At the beginning of last year, you purchased Delta Derivatives and Zeta Functions. The Delta Derivatives shares cost you $12 per share and paid 6% in dividends for the year, while Zeta Functions shares cost you $4 per share and paid 5% in dividends for the year. If you invested a total of $7,400 and earned $430 in dividends at the end of the year, how many shares of each company did you purchase?
Suppose you bought 100 shares of IBM at $200 per share. What is the max loss if you place a stop loss order at $165?
You purchased 2,640 shares of Barrett Golf Corporation stock at a price of $26.08 per share. While you owned the stock, you received dividends totaling $.71 per share. Today, you sold your stock at a price of $30.12 per share. What was your total dollar return on the investment?
At the beginning of last year, you invested €4000 in 80 shares of an EU based company. During the year, the company paid dividends of €5 per share. At the end of the year, you sold the 80 shares for €59 a share. Calculate your total HPY on these shares and indicate how much was due to the price change and how much was due to the dividend income.
You bought a stock one year ago for $50.78 per share and sold it today for $56.05 per share. It paid a $1.81 per share dividend today. What was your realized return?
Q9 You invested $7500 of your own money and borrowed $7500 from your broker to purchase shares of a company trading at a share price of $2. You paid 10% interest on your borrowed money for one year. You sold the stock one year later for $1.28. How much money in total did you lose on this transaction including the interest you paid?
In you cash account, you buy 100 shares of XYZ Corporation at a price of $10 per share. Two months later, XYZ pays a dividend $0.21 per share. You sell all 100 shares of XYZ three months later at a price of $12 per share. What is your capital gain on this trade?
Angela invested his savings in shares of a new company. The company's share price dropped by $3.25 at the end of the first year, and by a further $0.75 at the end of the second year. The share price was $28.44 at the end of the second year. a. Calculate the original share price (at the beginning of the first year). Round to the nearest cent. b. Calculate the percent change in the share price over the two-year period. % Round to two decimal places.
Lennys Sub Shop just paid a dividend of $2.00 a share (this is Do = $2.00). The dividend is expected to grow 0% a year for the next 3 years and then a 6% a year thereafter. What is the expected dividend per share for Year 1?
(Calculating rates of return) On December 10, 2007, the common stock of Google Inc. (GOOG) was trading for $ 718.42. One year later the shares sold for only $ 308.82. Google has never paid a common stock dividend. What rate of return would you have earned on your investment had you purchased the shares on December 10, 2007? Question content area bottom Part 1 The rate of return you would have earned is enter your response here %. (Round to two decimal places.)
An investor in Sony purchased the stock last year for $22.16. Today, the investor was able to sell the stock for $34.25. What capital gain did the investor earn in the past year?
You purchased a stock for $50, and later sell for $49. You received $2 in dividends. What is your capital gain yield? A) - 40.9 % 0 B) - 2% C) -2.04% D) -40%

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS