(13) An investor bought 10000 50k shares at # 1 / (13 1/2) She received a first dividend of 12 1/2% and then sold the shares at 1.18 * 1/2 The cost of buying and selling the shares ⚫amounted to N1060. How much did she gain altogether?

Damorela590

2 years ago

Answer: The investor gained #440 altogether

Step 1: Calculate the total cost of buying the shares.

The investor bought 10,000 shares at a price of #1.13½ per share.

Total cost of buying = Number of shares × Price per share

Total cost of buying = 10,000 shares × #1.13½ per share

To simplify the calculation, we'll convert #1.13½ to decimal form:

#1.13½ = #1.135

So,

Total cost of buying = 10,000 shares × #1.135 per share

Step 2: Calculate the total revenue from selling the shares.

The investor sold the shares at a price of #1.18½ per share.

Total revenue from selling = Number of shares × Price per share

Total revenue from selling = 10,000 shares × #1.18½ per share

To simplify the calculation, we'll convert #1.18½ to decimal form:

#1.18½ = #1.185

So,

Total revenue from selling = 10,000 shares × #1.185 per share

Step 3: Determine the gain.

The cost of buying and selling the shares amounted to #1060.

Gain = Total revenue from selling - Total cost of buying - Cost of buying and selling

Now, let's perform the calculations:

Total cost of buying = 10,000 shares × #1.135 per share

= 10,000 × 1.135

≈ #11,350

Total revenue from selling = 10,000 shares × #1.185 per share

= 10,000 × 1.185

≈ #11,850

Gain = Total revenue from selling - Total cost of buying - Cost of buying and selling

= #11,850 - #11,350 - #1060

= #440