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Author Question: Celine purchased 5,000 shares of stock for $500,000. A year later the stock is valued at $650,000. ... (Read 112 times)

mpobi80

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Celine purchased 5,000 shares of stock for $500,000. A year later the stock is valued at $650,000. Instead of selling the stock, Celine held onto it for another year. Which of the following is 
true?


◦ The $150,000 increase in the value of the stock represents a dividend.
◦ The $150,000 increase in the value of the stock represents an unrealized capital gain.
◦ To determine the capital gain, it is first necessary to know the normal rate of return on capital.
◦ The total capital gain will be at least $150,000.


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Marked as best answer by mpobi80 on Apr 19, 2019

Chou

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