A stock is bought for $23.00 and sold for $27.00 one year later, immediately after it has paid a dividend of $1.50. what is the capital gain rate for this transaction
To solve: Capital gain rate = (P1 - P0)/P0 Capital gain rate = ($27.00 - $23.00)/$23.00 Capital gain rate = $4/$23 Capital gain rate = 0.1739 Capital gain rate = (0.1739)(100) Capital gain rate = 17.39%
