Asked by Natali Hernandez-Chavez on Apr 30, 2024
Verified
One year ago, you purchased a stock at a price of $28.75. The stock pays quarterly dividends of $.35 per share. Today, the stock is worth $31.25 per share. What is the total amount of your capital gains to date from this investment?
A) $0.70
B) $1.10
C) $1.40
D) $2.50
E) $3.90
Quarterly Dividends
Payments made by a corporation to its shareholders, usually on a quarterly basis, from its profits or reserves.
Capital Gains
The profit from the sale of assets or investments when the selling price exceeds the original purchase price.
Shares
Units of ownership interest in a corporation or financial asset, giving the shareholders a proportionate claim on the company’s earnings and assets.
- Assess the financial performance of equity investments, including both profits and deficits.
Verified Answer
Learning Objectives
- Assess the financial performance of equity investments, including both profits and deficits.
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