Suppose You Have a Total Return of 8 Percent on the 500

question 32

Multiple Choice

Suppose you have a total return of 8 percent on the 500 shares of XYZ Company that you bought for $9,590 last year.XYZ paid four equal quarterly dividends during the year.What would be the quarterly dividend if the current stock price is $18.64 per share?

• A) $0.50
• B) $0.52
• C) $0.54
• D) $0.56

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Definitions:

Cash Dividends

Payments made by a company out of its profits to its shareholders in the form of cash.

Comparative Balance Sheet

A financial statement that presents a company's assets, liabilities, and shareholders' equity at two different points in time to analyze financial health and trends.

Net Income

The company's final financial gain once every expense, tax, and cost is subtracted from the gross income.

Operating Activities

Financial transactions and events related to the core business operations of a company.