Assume that you purchased 200 shares of C-Mac Industries stock for $110 a share, that you received an annual dividend of $4.00 a share, and that you then sold your stock for $130 a share at the end of one year.What is the total profit on your investment? (Ignore commission amounts for this question.)

Question

Quizplus · Accepted Answer

The total profit is calculated by adding the capital gains and the dividend income. Capital gains are calculated as (selling price - purchase price) * number of shares = ($130 - $110) * 200 = $20 * 200 = $4,000. Dividend income is calculated as dividend per share * number of shares = $4.00 * 200 = $800. Therefore, the total profit is $4,000 (capital gains) + $800 (dividend income) = $4,800.

Assume That You Purchased 200 Shares of C-Mac Industries Stock