If Sara purchases 100 shares of Abercrombie and Fitch stock for $20 a share and then sells the stock for $23 per share, Sara will have a
A) $3 dividend per share.
B) capital gain of $300.
C) capital gain of $100.
D) $300 decrease in the value of her stock.
E) total return of $3.

Question

Quizplus · Accepted Answer

Sara's initial investment was $20 x 100 = $2000. When she sells the stock for $23 per share, she receives 100 x $23 = $2300. Her capital gain is the difference between the amount she received and her initial investment, so $2300 - $2000 = $300.

If Sara Purchases 100 Shares of Abercrombie and Fitch Stock