One year ago, you bought 500 shares of Webster, Inc. Stock at $37.00 per share. You just

Question:

One year ago, you bought 500 shares of Webster, Inc. Stock at $37.00 per share.

You just received a dividend of $1,000 and Webster Stock now sells for $38.

a. How much did you earn in capital gains?

b. What was you total dollar return?

c. What was your percentage return?

d. Must you sell the stock to include the capital gain in your return?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...