Question

You purchased a stock at a price of $63.51. The stock paid a dividend of $1.75 per share and the stock price at the end of the year is $56.79. What are your capital gains on this investment?

Answer 1

To calculate the capital gains on this investment, subtract the purchase price from the selling price to find a capital loss of $6.72.

Step-by-step explanation:

To calculate the capital gains on this investment, we need to subtract the purchase price from the selling price. In this case, the purchase price is $63.51 and the selling price is $56.79. Therefore, the capital gains can be calculated as:

Capital gains = Selling price - Purchase price
= $56.79 - $63.51
= -$6.72

Since the result is negative, it means that there is a capital loss of $6.72 on this investment.