Sarah purchased a share one year ago at a price of $32. In the past year, she has received four quarterly dividends of $0.75 each. Today she sold the stock for $38 a share. Her capital gain per share is
A) $9.00.
B) $6.00.
C) $3.00.
D) $8.00.

Question

Quizplus · Accepted Answer

The capital gain per share is calculated by subtracting the purchase price from the selling price. So, $38 (selling price) - $32 (purchase price) = $6.00. The dividends are not included in the capital gain calculation.

Sarah Purchased a Share One Year Ago at a Price