Last October 30, 2020, Liza bought 500 shares of RTW stock for Php 650.00 per share.

Question

Last October 30, 2020, Liza bought 500 shares of RTW stock for Php 650.00 per share. On November 25, 2020, RTW paid a Php 630.00 dividend per share, and on January 15, 2021, she sold the stock for Php 680.00 per share. Did Liza gain or lose on the investment? How much did she gain or lose? Show your solution and write a short explanation in 2-3 sentences only. 

Answer 1

Liza bought 500 shares of RTW stock for Php 650.00 / share.

So, her total investment was =. 650.00 x 500 = Php 325,000.00

On Nov 25th, RTW paid a Php 630.00 dividend / share

So, Liza got total dividend = 630.00 x 500 = 315,000.00

On Jan 15th, Liza sold the stock for Php 680.00 / share

So, by selling 500 shares, Liza received =. 680 x 500 = Php 340,000

Total money Liza gained = stock sale + Dividend - initial investment

= Php 340,000 + Php 315,000 - Php 325,000

= Php 330,000

So, Liza gained Php 330,000