Indy owns 100 shares of stock in Pet Mart Corporation that he purchased for $20 per share.Every year he has received, from company profits, $1 for each share he owns.If Indy holds his shares for five years, he

Question

Quizplus · Accepted Answer

According to the information given, Indy owns 100 shares of stock and has received $1 for each share he owns every year. Therefore, his total dividend income would be:

$1 x 100 shares x 5 years = $500

There is no information given about a potential capital gain or interest income. Therefore, choice A is the best option as it reflects the dividend income that Indy will receive if he holds the stock for five years.

Indy Owns 100 Shares of Stock in Pet Mart Corporation