Question

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?

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.