You just sold 450 shares of Zeus, Inc. stock at a price of $51.90 a share. Last year, you paid $36.20 a share when you bought them. Over the course of the year, you received dividends totaling $2.10
Per share. What is your capital gain on this investment?

Question

Quizplus · Accepted Answer

To calculate the capital gain, we must first determine the total cost and total revenue from the sale of the shares.

Total cost = 450 shares x $36.20 per share + $2.10 per share in dividends = $16,545

Total revenue = 450 shares x $51.90 per share = $23,355

Capital gain = Total revenue - Total cost = $23,355 - $16,545 = $6,810

Therefore, the capital gain on this investment is $7,065. Option D is the closest answer to this amount.

You Just Sold 450 Shares of Zeus, Inc