One year ago, you purchased a stock at a price of £32.50.The equity pays quarterly dividends of £.40 per share.Today, the shares are worth £34.60.What is the total amount of your dividend
Income to date from this investment?
A)£0.40
B)£1.60
C)£2.10
D)£2.50
E)£3.70

Question

Quizplus · Accepted Answer

The total dividend income is calculated by multiplying the quarterly dividend by the number of quarters in a year. Since the dividend is £0.40 per quarter, over four quarters (one year), the total dividend income would be £0.40 * 4 = £1.60.

One Year Ago, You Purchased a Stock at a Price