One year ago, Yokino purchased 100 shares of stock for $3,896. Since that time, he has received a total of $180 in dividends. If he sells the stock at today's market price he will realize a total return on
His investment of 10.37%. Assuming he sells the stock today, what is the dollar amount of his capital
Gain per share of stock?

Question

Quizplus · Accepted Answer

Yokino invested $3,896 and received $180 in dividends, giving him a total return of $4,076. His capital gain is then:
Total Return - Dividends = Capital Gain
$4,076 - $180 = $3,896 + Capital Gain
Capital Gain = $4,076 - $3,896 = $180

To find the dollar amount of his capital gain per share of stock, we need to know how much he paid per share. We can find this by dividing his total investment by the number of shares:
$3,896 / 100 = $38.96 per share

Now we can find the dollar amount of his capital gain per share by dividing the total capital gain by the number of shares:
$180 / 100 = $1.80 per share

Therefore, the answer is B) $2.24.

One Year Ago, Yokino Purchased 100 Shares of Stock for $3,896