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Consider today's stock listing for Rayje Clothiers, shown below.
\begin{tabular}{|c|c|c|c|c|c|} \hline 52 wk. High & 52 wk. Low & Symbol & Div. & Close & Net Change \\ \hline 225.80 & 169.96 & RA & 2.5 & 200.43 & 13.74 \\ \hline \end{tabular}
Today, you sold the 459 shares of Rayje Clothiers that you purchased yesterday. How much profit did you make?
A. [tex]$\$[/tex] 13,905.73[tex]$
B. $[/tex]\[tex]$ 8,110.00$[/tex] C. [tex]$\$[/tex] 5,338.17[tex]$
D. $[/tex]\[tex]$ 6,306.66$[/tex]
Please select the best answer from the choices provided:
1. Identifying the Initial Purchase Price Per Share: - The closing price of a share today is [tex]$200.43.
- The net change indicates how much the price has increased since yesterday. Given that the net change is $[/tex]13.74, we determine the initial (yesterday's) purchase price by subtracting the net change from today's closing price: [tex]\[
\text{Initial Purchase Price Per Share} = 200.43 - 13.74 = 186.69
\][/tex]
2. Calculating the Total Purchase Amount: - You have 459 shares. - To find the total amount spent to purchase these shares, multiply the initial purchase price per share by the number of shares: [tex]\[
\text{Purchase Amount} = 186.69 \times 459 = 85690.71
\][/tex]
3. Calculating the Total Selling Amount: - The shares were sold at today’s closing price of [tex]$200.43 per share.
- To determine the total amount received from selling these 459 shares, multiply the selling price per share by the number of shares:
\[
\text{Selling Amount} = 200.43 \times 459 = 91997.37
\]
4. Calculating the Profit:
- Profit is calculated by subtracting the purchase amount from the selling amount:
\[
\text{Profit} = \text{Selling Amount} - \text{Purchase Amount} = 91997.37 - 85690.71 = 6306.66
\]
So, the profit made from selling the shares is $[/tex]\[tex]$6,306.66$[/tex].
Among the given choices, the best answer is: d. \$6306.66
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