An investor receives a 15% total return by purchasing a stock for $40 and selling it after one year with a 5% capital gain.How much was received in dividend income during the year?
A) $2.00
B) $2.20
C) $4.00
D) $4.40

Name: An investor receives a 15% total return by purchasing a stock for $40 and selling it after one year with a 5% capital gain.How much was received in dividend income during the year? A) $2.00 B) $2.20 C) $4.00 D) $4.40
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Question

Quizplus · Accepted Answer

Dividend income = (0.15 − 0.05) × $40 = $4.00

An Investor Receives a 15% Total Return by Purchasing a Stock