To determine the gain or loss when selling the shares of Zycodec at the current closing price, we need to follow these detailed steps:
1. Determine the purchase price per share and the number of shares:
- The lowest price per share last year for Zycodec was \[tex]$29.39.
- The stockholder purchased 25 shares at that price.
2. Calculate the total cost of purchasing the shares:
\[
\text{Total cost} = \text{Lowest price per share} \times \text{Number of shares}
\]
Substituting the values, we get:
\[
\text{Total cost} = 29.39 \times 25 = 734.75
\]
3. Determine the current closing price per share:
- The closing price per share for Zycodec is \$[/tex]34.95.
4. Calculate the total value of the shares at the current closing price:
[tex]\[
\text{Total value} = \text{Closing price per share} \times \text{Number of shares}
\][/tex]
Substituting the values, we get:
[tex]\[
\text{Total value} = 34.95 \times 25 = 873.75
\][/tex]
5. Determine the gain or loss:
[tex]\[
\text{Gain or loss} = \text{Total value} - \text{Total cost}
\][/tex]
Substituting the values, we get:
[tex]\[
\text{Gain or loss} = 873.75 - 734.75 = 139.00
\][/tex]
Since the total value of the shares at the current closing price is higher than the total cost, the stockholder has realized a gain.
Therefore, the gain is \[tex]$139.00.
The correct answer is:
- The gain is \$[/tex]139.00
