Six months ago,you purchased 100 shares of ABC plc at a price of £43.89 a share.ABC pays a quarterly dividend of £.10 a share.Today,you sold all of your shares for £45.13 per share.What is the total amount of your capital gains on this investment?

Question

Quizplus · Accepted Answer

First, we need to calculate the total cost of purchasing 100 shares of ABC:

100 shares * £43.89 per share = £4,389

Next, we need to calculate the total amount of dividends received over the six-month holding period:

4 quarters * £0.10 per share per quarter = £0.40 per share

100 shares * £0.40 per share = £40

Now, we can calculate the total amount received from selling the shares:

100 shares * £45.13 per share = £4,513

To calculate the capital gains, we subtract the total cost (including dividends) from the total amount received:

£4,513 - £4,389 - £40 = £84

Therefore, the total capital gains on this investment are £84, which corresponds to answer choice D.

Six Months Ago,you Purchased 100 Shares of ABC Plc at a Price