Red ink bleeds, shares whisper pain, but wait! A silver lining! Ten per share rain. Loss shrinks, transforms, hope takes hold again. Dividend's balm heals, whispers, "Not the end."
The additional information about the one-time dividend does affect the net profit/loss of the investor in Situation 5, but it depends on how you calculate it. Here's why:
Profit/Loss without Dividend:
Investment: 200 shares at $10/share + 300 shares at $25/share + 225 shares at $50/share = $15,500.
Selling price: 500 shares at $25/share = $12,500.
Loss without dividend: $15,500 - $12,500 = $3,000.
Profit/Loss with Dividend:
Dividend: 500 shares * $10/share = $5,000.
Total gain from selling and dividend: $5,000 + $12,500 = $17,500.
Profit with dividend: $17,500 - $15,500 = $2,000.
Therefore, considering the one-time dividend:
The investor's net profit becomes $2,000 instead of a $3,000 loss.
The dividend partially offsets the loss incurred from selling the shares at a lower price than the purchase price.
Important Note:
This calculation assumes the investor reinvested the dividend amount. If they didn't, the final profit/loss would be different.