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. Refer to the information given.If Indy holds his shares for five years,he:

Question

Quizplus · Accepted Answer

If Indy holds his shares for five years, he will receive $1 per share in dividends every year for a total of $5 per share. Since he owns 100 shares, he will receive a total of $500 in dividends over 5 years. Therefore, option A is the best choice. Option B is not applicable since the question does not provide any information about the current or future stock price. Option C is incorrect as dividends are not considered interest. Option D is not the best choice since it is not clear whether selling the stock would result in a higher return on investment.

Indy Owns 100 Shares of Stock in Pet Mart Corporation