A Stock Is Held One Year,during Which Time Its Dividend

question 101

Multiple Choice

A stock is held one year,during which time its dividend yield was greater than its capital gains yield.For this stock,the percentage return:

• A) is zero.
• B) is negative.
• C) equals the dividend yield.
• D) cannot be determined.

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Definitions:

Social Security Rate

The percentage rate at which income is taxed to fund the Social Security program.

Medicare

A federal health insurance program in the United States primarily for people who are 65 or older, as well as for some younger people with disabilities.

Net Pay

The amount of money received by an employee after all deductions, such as taxes and retirement contributions, have been subtracted from their gross salary.

Social Security Tax

A mandatory tax levied on both employees and employers to fund the Social Security program, which provides retirement, disability, and survivorship benefits.