Excelsior shares are currently selling for $25.75 each.You bought 200 shares one year ago at $24 and received dividend payments of $1.60 per share.What was your percentage capital gain this year?
A)4.17%
B)6.80%
C)10.42%
D)104.17%
E)110.42%

Question

Quizplus · Accepted Answer

First, let's calculate the total amount spent on the 200 shares one year ago:

200 shares x $24 per share = $4,800

Now, let's calculate the total dividend payments received:

200 shares x $1.60 per share = $320

The total earnings from selling the shares this year would be:

200 shares x $25.75 per share = $5,150

To calculate the capital gain, we need to subtract the initial investment and the total dividend payments from the total earnings and then divide by the initial investment, expressed as a percentage:

(($5,150 - $4,800 - $320) / $4,800) x 100 = 6.80%

Therefore, the percentage capital gain for this year is 6.80%, which corresponds to choice B.

Excelsior Shares Are Currently Selling for $25