Michaela Petty owns common shares in Procter & Gamble.Last quarter she received a cheque from P&G for $132,which is her share of P&G's distributed profits.Petty has received which of the following?

Question

Quizplus · Accepted Answer

Petty received a cheque from P&G for her share of its distributed profits. This share of profits is called a dividend, which makes (C) the correct choice. Interest is a payment made on a loan, a yield is the income generated by an investment, and a capital gain is the profit earned from selling an asset for more than its purchase price. None of these apply in this scenario.

Michaela Petty Owns Common Shares in Procter & Gamble