Let's break down the steps to find the gain or loss for the stockholder who purchased 25 shares of Zycodec at its lowest price of the year and sold it at the current closing price.
1. Identify the key figures involved:
- Number of shares purchased: 25
- Lowest price of Zycodec during the year: [tex]$29.39
- Current closing price of Zycodec: $[/tex]34.95
2. Calculate the total amount paid when purchasing the shares:
[tex]\[
\text{Total cost} = \text{Number of shares} \times \text{Lowest price}
\][/tex]
Substituting the given values:
[tex]\[
\text{Total cost} = 25 \times 29.39 = 734.75
\][/tex]
3. Calculate the total value of the shares at the current closing price:
[tex]\[
\text{Total value} = \text{Number of shares} \times \text{Closing price}
\][/tex]
Substituting the given values:
[tex]\[
\text{Total value} = 25 \times 34.95 = 873.75
\][/tex]
4. Determine the gain or loss:
[tex]\[
\text{Gain or Loss} = \text{Total value} - \text{Total cost}
\][/tex]
Substituting the calculated totals:
[tex]\[
\text{Gain or Loss} = 873.75 - 734.75 = 139.00
\][/tex]
Since the total value (873.75) is greater than the total cost (734.75), the stockholder made a gain.
Therefore, the correct answer is:
- The gain is \$139.00.
