Daisy Diaz purchased 100 shares of Cameco Inc.at $40 dollars a share.The shares subsequently split three for one on December 31, 2004 and currently trade at $50 a share.If Daisy sells all of her shares, what will be his capital gain?

Question

Quizplus · Accepted Answer

After the 3-for-1 split, Daisy has 300 shares (100 original shares * 3). Selling at $50 each, she gets $15,000 (300 shares * $50/share). Her original investment was $4,000 (100 shares * $40/share). The capital gain is $15,000 - $4,000 = $11,000.

Daisy Diaz Purchased 100 Shares of Cameco Inc