Mia recently purchased 500 shares of a company for $20,000 ($40 per share). This year, she received a dividend of $2,000. Her shares are now worth $120. What is Mia's per share basis in the company?

Question

Quizplus · Accepted Answer

Mia's per share basis remains $40, which is the original purchase price per share ($20,000 for 500 shares). The dividend received and the current share value do not affect the original cost basis per share.

Mia Recently Purchased 500 Shares of a Company for $20,000