One year ago, you purchased a stock at a price of $28.75. The stock pays quarterly dividends of $.35 per share. Today, the stock is worth $31.25 per share. What is the total amount of your capital
Gains to date from this investment?

Question

Quizplus · Accepted Answer

First, calculate the total amount of dividends received in one year:

$.35 per share x 4 quarters = $1.40 per share in total dividends

Next, calculate the current value of the stock:

$31.25 per share - $28.75 per share = $2.50 per share increase in value

Finally, add the total dividends received to the increase in value:

$1.40 + $2.50 = $3.90

Therefore, the capital gains to date for this investment is $3.90.

One Year Ago, You Purchased a Stock at a Price