Six months ago, you purchased 100 shares of stock in global trading at a price of $38.70 a share. the stock pays a quarterly dividend of $.15 a share. today, you sold all of your shares for $40.10 per share. what is the total amount of your dividend income on this investment?

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Business

Vincent Travis

16 February, 04:22

Six months ago, you purchased 100 shares of stock in global trading at a price of $38.70 a share. the stock pays a quarterly dividend of $.15 a share. today, you sold all of your shares for $40.10 per share. what is the total amount of your dividend income on this investment?

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Ishaan Lee · Answer 1

We can get the total dividend income by multiplying the shares bought at the at the par value then add the interest acquired.

Total value of shares sold = 100 shares * $40.1

= $4010

You get 1 dividend share for the 6-month term

interest = $0.15*100

=$15

value of shares bought = 100 shares x $38.7

=$3870

Total income = total value of shares sold + interest - value of shares bought

=$4010+$15-$3870

= $155

The total income for this investment is $155.