Question

Leon purchased 8,500 shares of stock at a price of $11.45 a share. He sold the stock six years later at a price of $19.78 per share. His capital gain is about 58%.
True or False

Answer 1

Selling price,SP=8500*19.78=168130
Cost price=CP=8500*11.45=97325
gain=sp-cp=70805

gain%=gain*100/cp=7080500/97325=72.75%

so, False

Answer 2

Answer:

False

Step-by-step explanation:

We are given that

Leon purchased shares=8500

Cost of 1 share=$11.45

Selling price of 1 share=$19.78

His capital gain=58%

We have to find it is true or false.

Cost of 8500 shares=$97325

Selling price of 8500 shares=$8500\times 19.78$=$168130

Profit=S.P-C.P=168130-97325=$70805

Profit %=$\frac{profit}{C.P}\times 100$

Profit %=$\frac{70805}{97325}\times 100=$72.75%=73%

Hence, his capital gain is about 73% not 58%

Answer:False