Question

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?

Answer 1

See a solution process below:

Explanation:

The shares were purchased at:

`100"shares" xx ($57.12)/"share" = $5712.00`

The shares were sold at:

`100"shares" xx ($68.38)/"share" = $6838.00`

The difference, which is the profit is:

`$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:

`($68.38)/"share" - ($57.12)/"share" = ($11.26)/"share"`

`100"shares" xx ($11.26)/"share" = $1126.00`

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