[tuningvelocity]

How much would an investor earn on a stock purchased 1 year ago for $63 if it paid an annual cash dividend of $3.75 and had just been sold for $67.50? Would the investor have experienced a capital gain? Explain

Thanks.

[Choux]

YOu purchased 100 shares(a round lot)of shares of ABC Company for $63.00 a share and sold them for $67.50. You have a capital gain of $450($4.50 a share increase times 100 shares).

While you owned the stock, it paid a dividend of $3.75($3.75 a share times 100 equals $375.00). You have divident income of $375.