Question

​Holding-period dollar gain and return​) Suppose you purchased 10 shares of Disney stock for ​$22.59 per share on May​ 1, 2012. On September 1 of the same​ year, you sold 10 shares of the stock for ​$24.93. Calculate the​ holding-period dollar gain for the shares you​ sold, assuming no dividend was​ distributed, and the​ holding-period rate of return.

a. The​ holding-period dollar gain for the shares you sold is ​$ nothing. Enter a negative number if it is a loss.  ​(Round to the nearest​ cent.)

Answer 1

Solution :- (A)

Total number of Shares Purchased = 10 Shares

Purchase Price per share = $22.59

The Total Purchase Value = $22.59 * 10 = $225.9

Share Sold at a Price = $24.93 Per share

Total Sales Value of 10 Shares = $24.93 * 10 = $249.3

Now the holding-period dollar gain for the shares sold = $249.3 - $225.9 = $23.4

If there is any doubt please ask in comments

Thanks Please Rate .....