Jessica bought a stock at a price of $11.50.She received a $.75 dividend and sold the stock for $12.50.What is Jessica's capital gain on this investment?
A) $0.25
B) $0.75
C) $1.00
D) $1.75

Question

Quizplus · Accepted Answer

Jessica's total earnings from the investment are the sum of the dividend received and the capital gain from selling the stock.

Dividend: $0.75 
Selling price: $12.50

Capital gain = Selling price - Purchase price 
Purchase price = $11.50 
Capital gain = $12.50 - $11.50 = $1.00

Therefore, Jessica's capital gain on this investment is $1.00, which is option C.

Jessica Bought a Stock at a Price of $11