Answer:
The selling of the stocks gave a profit of $16,675.
Step-by-step explanation:
The initial capital was 400 shares, that were valuated at $90.00. This is $36,000.
Six months after, the price drop to $45.00 per share. The stocks that you sold would be valuated a total of $18,000.
That is a relative profit of $18,000.
Then, we have to substract the dividends that you didn't get and the cost of transaction.
The dividends are two payments of $1.50 per share each. The total amount is 400*1.50*2=$ 1,200.
The cost of transaction is $125.
Then, the net profit from selling is:
P = $18,000 - $1,200 -$125= $16,675
