Asked by Jesus Gonzalez Jauregui on Jun 20, 2024
Verified
Six months ago, you purchased 100 shares of stock in ABC Co. at a price of $43.89 a share. ABC stock pays a quarterly dividend of $.10 a share. Today, you sold all of your shares for $45.13 per share. What is the total amount of your capital gains on this investment?
A) $1.24
B) $1.64
C) $40.00
D) $124.00
E) $164.00
Quarterly Dividend
A dividend paid by a company to its shareholders every quarter, representing a portion of the company's earnings.
Capital Gains
The profit earned from the sale of an asset or investment which has increased in value over the holding period.
Shares
Units of ownership in a company or financial asset that represent a portion of the total capital.
- Compute the profits and losses from stock market investments.
Verified Answer
CR
Candice RobinsonJun 27, 2024
Final Answer :
D
Explanation :
The capital gain per share is the selling price minus the purchase price, which is $45.13 - $43.89 = $1.24. For 100 shares, the total capital gain is $1.24 * 100 = $124.00.
Learning Objectives
- Compute the profits and losses from stock market investments.