Six months ago,you purchased 100 shares of stock in ABC Co.at a price of $44.89 a share.ABC stock pays a quarterly dividend of $.15 a share.Today,you sold all of your shares for $46.23 per share.What is the total amount of your capital gains on this investment?

Question

Quizplus · Accepted Answer

First, let's calculate the total amount paid to purchase the shares:
100 shares x $44.89/share = $4,489

Next, let's calculate the total dividends received:
$.15/share x 4 quarters x 100 shares = $60

Now, let's calculate the total amount received from selling the shares:
100 shares x $46.23/share = $4,623

To calculate the capital gains, we need to subtract the total amount paid (including dividends) from the total amount received:
$4,623 - ($4,489 + $60) = $74

Therefore, the total amount of capital gains is $74 or Choice D.

Six Months Ago,you Purchased 100 Shares of Stock in ABC