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17 June, 10:02

You purchased a stock at a price of $76.90. The stock paid a dividend of $2.27 per share and the stock price at the end of the year is $68.36. What are your capital gains on this investment?

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  1. 17 June, 13:17
    0
    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.
  2. 17 June, 13:24
    0
    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
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