Question

You purchased a stock at a price of $76.90. The stock paid a dividend of $2.27 per share and the stock price at the end of the year is $68.36. What are your capital gains on this investment?

Answer 1

There was no capital on the investment rather a loss of $(8.54) excluding the dividend.

Capital loss =$(8.54)

Note technically , capital gains is defined as the difference between he value of the stocks when sold and the cost of the shares when purchased.

Step-by-step explanation:

Capital gain is the difference between he value of the stocks when sold and the cost of the shares when purchased.

Capital loss=76.90 -68.36

=$(8.54)

There was no capital on the investment rather a loss of $(8.54) exclusing the dividend.

Note technically , capital gains is defined as the difference between he value of the stocks when sold and the cost of the shares when purchased.

Answer 2

The Capital gains on the investment are - $ 8.54

Step-by-step explanation:

According to the given data we have the following:

Purchased stock price= $76.90

Stock price at the end of year=$68.36

stock paid a dividend of $2.27 per share

Therefore, in order to calculate the Capital gains on the investment we have to use the following formula:

Capital gains on the investment = Stock price at the end of year - Price at which stock was purchased =68.36 - 76.90

= - $ 8.54