Question

Your portfolio is 330 shares of Davis, Inc. The stock currently sells for $103 per share. The company has announced a dividend of $3.40 per share with an ex-dividend date of April 19.

Required:
Assuming no taxes, how much will your stock be worth on April 19?

Answer 1

To calculate the stock worth on April 19th, multiply the number of shares by the stock price and subtract the dividend amount.

Step-by-step explanation:

To calculate the value of your stock on April 19th, you need to consider two components: the number of shares you own and the dividend per share.

1. Multiply the number of shares (330) by the stock price ($103) to find the total value of your stocks: $103 × 330 = $34,290.
2. Next, multiply the dividend per share ($3.40) by the number of shares (330) to find the total dividend amount: $3.40 × 330 = $1,122.
3. Finally, subtract the total dividend amount from the total value of your stocks to get the final stock worth on April 19th: $34,290 - $1,122 = $33,168.

So, your stock will be worth $33,168 on April 19th.