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

question 63

Multiple Choice

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

---

Definitions:

Distributing

The process of delivering or spreading out goods, services, or resources from a central point to multiple recipients or locations.

Estate

The total of all the property, assets, and debts left by an individual at death, or the property entrusted to an individual during their lifetime.

Trust

(1) A business arrangement in which stock owners appoint beneficiaries and place their securities with a trustee, who manages the company and pays a share of the earnings to the stockholders. (2) An estate-planning arrangement whereby a person transfers property to another person and the property is used for the benefit of a third person.

Transfer Property

The act of legally changing ownership of property or assets from one party to another.