An investor bought 200 CYH shares with a par value of P1.00 per share at P50.00. He received cash dividends of P2.00 per share. The company also declares split dividend of 2-1. The market price after the payment of split is P30.00. Assuming that the investor sold all his shares, how much is the capital gains on the sale of shares of stocks (disregard commission and other charges)? a. 2,400 b. 14,400 c. 12,000 d. 14,000

An investor bought 200 CYH shares with a par value of P1.00 per share at P50.00. He received cash dividends of P2.00 per share. The company also declares split dividend of 2-1. The market price after the payment of split is P30.00. Assuming that the investor sold all his shares, how much is the capital gains on the sale of shares of stocks (disregard commission and other charges)? a. 2,400 b. 14,400 c. 12,000 d. 14,000

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter15: Dividend Policy

Section: Chapter Questions

Problem 5P

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An investor bought 200 CYH shares at P50.00. He received cash dividends of P2.00 per share. The company also declares split dividend of 2-1. The market price after the declaration of split is P60.00. Assuming that the investor sold all his shares at the date of declaration, how much profit is realized on the sale of shares of stocks (disregard commission and other charges)?
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