Question

At the beginning of the year you bought 190 shares of Larkspur Ltd. at $76 each. During the year you received dividends of $494. At the end of the year the stock is trading for $79 and you decide to sell all your shares.

Calculate your capital gain, total dollar return, and percentage return. (Round percentage return to 2 decimal places, e.g. 15.25%. Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).)

At the beginning of the year you bought 190 shares of Larkspur Ltd. at $76 each. During the year you received dividends of $494. At the end of the year the stock is trading for $79 and you decide to sell all your shares. Calculate your capital gain, total dollar return, and percentage return. (Round percentage return to 2 decimal places, e.g. 15.25%. Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).) Capital gain/(loss) s Total dollar return Percentage return %

Answer 1

Dear student thankyou for using homeworklib.

Please find the answer below.

Statement showing computation:

1) Calculation of capital gain:

Capital gain= (Ending price-beginning price)*Number of shares

Capital gain= (79-76)*190= 570

Capital gain= $570

2) Total dollar return:

Total dollar return= Capital gain +dividend

Total dollar return= 570+494= 1064

Total dollar return= $1064

3() Calculation of percentage return:

Beginning value= 76*190= $14440

Percentage return= 1064/14440*100= 7.37%

Percentage return= 7.37%