An investor receives a 15 percent total return by purchasing a stock for $40 and selling it after one year with a 10 percent capital gain.How much was received in dividend income during the year?
A)$2.00
B)$2.20
C)$4.00
D)$6.00

Question

Quizplus · Accepted Answer

The total return is the sum of the capital gain and the dividend income. The capital gain is 10% of $40, or $4. The total return is 15% of $40, or $6. Therefore, the dividend income is $6 - $4 = $2.

An Investor Receives a 15 Percent Total Return by Purchasing