Question

one year ago, you purchased a stock at a price of $43.20 per share. the stock pays quarterly dividends of $.18 per share. today, the stock is selling for $45.36 per share. what is your capital gain on this investment?

Answer 1

The capital gain on this investment is $2.88 per share.

Step-by-step explanation:

To calculate the capital gain on this investment, we need to find the difference between the selling price and the purchase price per share.

The purchase price per share was $43.20, and the selling price per share is $45.36. Therefore, the capital gain per share is $45.36 - $43.20 = $2.16.

Since the stock pays quarterly dividends, we also need to consider the dividends received in the past year. To find the total dividends received, we can multiply the quarterly dividend per share ($0.18) by the number of quarters in a year (4). Therefore, the total dividends received per share in a year are $0.18 * 4 = $0.72.

Finally, to calculate the total capital gain, we can add the capital gain per share ($2.16) to the total dividends received per share ($0.72).

Therefore, the total capital gain on this investment is $2.16 + $0.72 = $2.88 per share.