Question

Six months ago, you purchased 100 shares of stock in Arepa Corp. at a price of $43.89 per share. Arepas stock pays a quarterly dividend of $.10 a share. Today, you sold all of your holdings for $45.13 per share. What is the total amount of your capital gains on this investment

Answer 1

Answer:

The total amount of your capital gains on this investment is $124

Explanation:

Capital Gain / loss is the difference between the selling and purchasing prices. Capital gain arises when sales price of an asset is more than purchase price. Capital loss arises when sales price of an asset is less than purchase price.

Total Purchase value = 100 x $43.89 = $4,389

Selling price = 100 x $45.13 = $4,513

Capital Gain = $4,513 - $4,389 = $124