Question

Chiko bought 75 shares of stock at $19.58 per share. He received dividends of $73.42 during the year. At the end of the year, his stock was valued at $22.14.What was Chiko's purchase price?

a. $1468.5
b. $1469.5
c. $1467.5
d. $1468.0

Answer 1

Chiko's purchase price was $1468.5.

Step-by-step explanation:

To find Chiko's purchase price, we need to calculate the total cost of the shares. We can start by multiplying the number of shares purchased by the purchase price per share: 75 shares * $19.58/share = $1468.5

Next, we need to subtract the dividends received during the year from the total cost: $1468.5 - $73.42 = $1395.08

Finally, to find the purchase price, we need to subtract the end of year valuation from the remaining cost: $1395.08 - ($22.14 * 75) = $1468.5

Therefore, Chiko's purchase price was $1468.5, option (a).