A stock is bought for $22.00 and sold for $26.00 one year later,immediately after it has paid a dividend of $1.50.What is the capital gain rate for this transaction?

Question

Quizplus · Accepted Answer

Capital gain rate is calculated as follows:

Capital gain rate =(selling price - buying price - dividends)/buying price

=($26.00 - $22.00 - $1.50)/$22.00

= 0.18 or 18.18%

Therefore, the capital gain rate for this transaction is 18.18%, which is option D.

A Stock Is Bought for $22