Question

Leon purchased 8,500 shares of stock at a price of $11.45 a share. He sold the stock six years later at a price of $19.78 per share. His capital gain is about 58%.

True or False

Answer 1

selling price,SP=8500*19.78=168130
Cost price=CP=8500*11.45=97325
gain=sp-cp=70805

gain%=gain*100/cp=7080500/97325=72.75%

so, False

Answer 2

False

Explanation:

We are given that

Leon purchased shares=8500

Cost of 1 share=$11.45

Selling price of 1 share=$19.78

His capital gain=58%

We have to find it is true or false.

Cost of 8500 shares=$97325

Selling price of 8500 shares=
`8500* 19.78`=$168130

Profit=S.P-C.P=168130-97325=$70805

Profit %=
`(profit)/(C.P)* 100`

Profit %=
`(70805)/(97325)* 100=`72.75%=73%

Hence, his capital gain is about 73% not 58%

Answer:False