Indy Owns 100 Shares of Stock in Pet Mart Corporation

question 131

Multiple Choice

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.If Indy holds his shares for five years, he

• A)will have received $500 in dividends.
• B)will earn a capital gain of $500.
• C)will receive $500 in interest.
• D)should sell the stock to maximize the return on his investment.