Answer:
Gains on shares= $8,150
Explanation:
Shares are equity that investors buy with the goal of getting returns from dividends paid. The returns are usually paid yearly.
In this scenario the shares where bought and sold after one year so the dividends paid is for one year.
Dividend= 500 shares* $0.22= $110
Initial value of shares= 500 shares* $12
Initial value of shares= $6,000
Present value of shares= 500 shares * $28.08
Present value of shares= $14,040
Gain on shares= Present value+ Dividend- Initial value
Gain on shares= 14,040+ 110- 6,000
Gains on shares= $8,150
