Shares in Starbucks Coffee sold for $57.12 per share eighteen months ago; you purchased 100 shares. You just sold your shares at $68.38 per share. How much profit did you make on the sale?

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Answer 1 · 2018-07-28T14:14:35

See a solution process below:

The shares were purchased at:

$100 shares \times \frac{$ 57.12}{share} = $ 5712.00$ $100"shares" xx ($57.12)/"share" = $5712.00$

The shares were sold at:

$100 shares \times \frac{$ 68.38}{share} = $ 6838.00$ $100"shares" xx ($68.38)/"share" = $6838.00$

The difference, which is the profit is:

$$ 6838.00 - $ 5712.00 = $ 1126.00$ $$6838.00 - $5712.00 = $1126.00$

Another process would be to first subtract the two prices per share and then multiply by the number of shares:

$\frac{$ 68.38}{share} - \frac{$ 57.12}{share} = \frac{$ 11.26}{share}$ $($68.38)/"share" - ($57.12)/"share" = ($11.26)/"share"$

$100 shares \times \frac{$ 11.26}{share} = $ 1126.00$ $100"shares" xx ($11.26)/"share" = $1126.00$

This of course does not include any transaction costs or commissions paid.