Gwen purchased a stock one year ago for $25, and it is now worth $31. The stock paid a dividend of $1.50 during the year. What was the stock's rate of return from dividend income during the year?
A) 6%
B) 15%
C) 24%
D) 26%

Question

Quizplus · Accepted Answer

The rate of return from dividend income is calculated by dividing the dividend received by the purchase price of the stock. Therefore, the rate of return from dividend income is $1.50 / $25 = 0.06, or 6%.

Gwen Purchased a Stock One Year Ago for $25, and It