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

Question

Quizplus · Accepted Answer

Since the stock pays quarterly dividends of $.40 per share and a year has passed, you would have received four dividend payments. Therefore, the total dividend income is $.40 x 4 = $1.60.

One Year Ago, You Purchased a Stock at a Price