Answer:
The Capital gains on the investment are - $ 8.54
Explanation:
According to the given data we have the following:
Purchased stock price= $76.90
Stock price at the end of year=$68.36
stock paid a dividend of $2.27 per share
Therefore, in order to calculate the Capital gains on the investment we have to use the following formula:
Capital gains on the investment = Stock price at the end of year - Price at which stock was purchased =68.36 - 76.90
= - $ 8.54
Answer:
There was no capital on the investment rather a loss of $(8.54) excluding the dividend.
Capital loss =$(8.54)
Note technically , capital gains is defined as the difference between he value of the stocks when sold and the cost of the shares when purchased.
Explanation:
Capital gain is the difference between he value of the stocks when sold and the cost of the shares when purchased.
Capital loss=76.90 -68.36
=$(8.54)
There was no capital on the investment rather a loss of $(8.54) exclusing the dividend.
Note technically , capital gains is defined as the difference between he value of the stocks when sold and the cost of the shares when purchased.
