Western Corporation’s stock was $10 per share when purchased, and is now at $14 per share. The company made $1 million in after-tax income and there are 500,000 shares outstanding. What is the capital gain per share?
To calculate the capital gain per share, we need to know the original purchase price of the stock and the current price.
Given that the original purchase price was $10 per share and the current price is $14 per share, the capital gain per share can be calculated as follows:
Capital Gain per Share = Current Price - Original Purchase Price
= $14 - $10
= $4
Therefore, the capital gain per share is $4.