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 the above

Question

Quizplus · Accepted Answer

First, let's calculate the total cost of buying 100 shares at $20 each:

$20 x 100 = $2,000

Next, let's calculate the total value of the shares at the end of the year:

100 shares x $25 (the ending price) = $2,500

Now, let's calculate the total dollar capital gain:

$2,500 - $2,000 = $500

Finally, let's calculate the total dollar return, which includes both the capital gain and the dividends:

$500 (capital gain) + $400 (dividends) = $900

Therefore, the correct answer is C.

You Bought 100 Shares of Stock at $20 Each