If someone had bought 2,120 shares at the end of Year 2 and sold these shares at the end of Year 4, how much net profit they have made as a result of their share ownership?
A) £2,480.40
B) £7,695.60
C) £1,272.00
D) £699.60
E) £1,208.40
calculate the net profit from the sale of 2,120 shares at the end of Year 4, we need to consider the difference between the selling price and the buying price. However, since there is no specific information provided about the share prices at Year 2 and Year 4, I cannot provide an exact numerical answer. I can, however, guide you through the process of calculating the net profit step by step.
1. Find the Buying Price (Year 2):
You would need to know the share price at the end of Year 2. Multiply the number of shares (2,120) by the price per share at Year 2 to find the total cost of the shares at that time.
Buying Price (Year 2) = Number of Shares (2,120) x Price per Share (Year 2)
2. Find the Selling Price (Year 4):
Similarly, you would need to know the share price at the end of Year 4. Multiply the number of shares (2,120) by the price per share at Year 4 to find the total revenue from selling the shares.
Selling Price (Year 4) = Number of Shares (2,120) x Price per Share (Year 4)
3. Calculate Net Profit:
To calculate the net profit, subtract the Buying Price (Year 2) from the Selling Price (Year 4).
Net Profit = Selling Price (Year 4) – Buying Price (Year 2)
Without the specific share prices for Year 2 and Year 4, I cannot provide the exact numerical answer. You would need to obtain those prices and perform the calculations to determine the net profit. Once you have those prices, you can use the above formula to find the answer.
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