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Jhawk
Dec 18, 2006, 05:33 PM
Have a question that I am working on for class.

One year ago an John Doe invested $10,400 in 200 shares of XYZ Co stock and received a dividend of $600. He sold the 200 shares for $54.25 per share.

What was the capital gain? I got $52
What was total dollar return? $1050
What was % return?
What was stock dividend yield? 4%

Any suggestions on how to survive this?

CaptainForest
Dec 19, 2006, 01:18 AM
Capital Gain?
Purchase Price: $10,400
Sold for: 200 x 54.25 = 10,850

Therefore, difference of $450 in capital gain. In terms of taxable capital gains, that would be 450/2 = $225 in Canada.



I agree with you that the total dollar return was $1,050


what was % return?

You invested 10,400 and 1 year later you had accumulated 10,850 + 600 = 11,450.

(11,450 – 10,400) / 10,400 = 10.1%