Henry purchased 200 shares of ABC stock on April 1 at a price of $32.98 a share. ABC paid quarterly dividends of $.25 a share on May 15 and August 15. ABC also had a 2-for-1 stock split on
July 10. Henry sold all of his shares at $28.90 a share on August 13. Ignore all trading costs and
Commissions. What is the amount of the total proﬁt (or loss) that Henry made on ABC stock?

Question

Quizplus · Accepted Answer

Henry purchased 200 shares at $32.98, for a total of $6,596. He received $100 in dividends ($0.25 x 200 shares x 2 quarters). The stock split doubled his shares to 400. He sold 400 shares at $28.90, for a total of $11,560. His total profit is $11,560 - $6,596 + $100 = $5,164.

Henry Purchased 200 Shares of ABC Stock on April 1