What is the lowest stock price at which you can break even?

Question

Quizplus · Accepted Answer

To break even, the investor needs to sell the stock at the same price as they bought it. They bought the stock at $101 and have received a $2 dividend, so their net cost is $99. Since they want to break even, they need to sell the stock at $99, which includes a $4 profit. Dividing the $4 profit by the 40 shares they own gives a profit per share of $0.10. Subtracting this from the current price of $103 gives $102.90, which is the lowest stock price at which they can break even.

What Is the Lowest Stock Price at Which You Can