Question

One year ago, you purchased a stock at a price of $56.36 per share. Today, you sold your stock at a loss of 18.79 percent. Your capital loss was $13.05 per share. What was the total dividends per share paid on this stock over the year?

a) $43.31
b) $43.61
c) $43.91
d) $44.21

Answer 1

The total dividends per share paid on this stock over the year is $43.31.

Step-by-step explanation:

To find the total dividends per share paid on the stock over the year, we need to first calculate the original purchase price of the stock. Since the stock was sold at a loss of 18.79%, the selling price per share would be 100% - 18.79% = 81.21% of the original purchase price. Therefore, the original purchase price per share can be calculated using the equation:

Original Purchase Price x 81.21% = Selling Price

Substituting the known values:

$56.36 x 81.21% = $13.05

This gives us the original purchase price per share. To find the total dividends per share, we subtract the capital loss per share from the original purchase price per share:

Original Purchase Price - Capital Loss = Total Dividends

Substituting the known values:

$56.36 - $13.05 = $43.31

Therefore, the total dividends per share paid on this stock over the year is $43.31.