Sarah purchased a stock one year ago at a price of $32 a share.In the past year, she has received four quarterly dividends of $0.75 each.Today she sold the stock for $38 a share.Her capital gain per share is
A)$3.00.
B)$6.00.
C)$(6.00).
D)$9.00.

Question

Quizplus · Accepted Answer

The total dividends received in one year is:

$0.75 x 4 = $3.00

The total cost of the stock is:

$32 + $3 = $35

The capital gain per share is the selling price minus the cost:

$38 - $35 = $3

Therefore, the capital gain per share is $3. Since the question asks for the capital gain per share and not the total capital gain, the answer is option B, $6.00, which is double the capital gain for one share.

Sarah Purchased a Stock One Year Ago at a Price