You bought 100 shares of stock at $20 each. At the end of the year,you received a total of $400 in dividends,and your stock was worth $2,500 total. What was your total dollar capital gain and total dollar return?
A) $400; $500
B) $400; $900
C) $500; $900
D) $900; $2,500
E) None of these.

Question

Quizplus · Accepted Answer

Total dollar capital gain = (Total stock value at the end of the year) - (Total cost of buying the stocks)
Total dollar capital gain = $2,500 - (100 * $20) = $2,500 - $2,000 = $500

Total dollar return = (Total dollar capital gain) + (Total dividends received)
Total dollar return = $500 + $400 = $900

Therefore, the correct answer is C) $500; $900.

You Bought 100 Shares of Stock at $20 Each