If Raoul Purchases a Share of Stock for $40 and Four

question 55

Multiple Choice

If Raoul purchases a share of stock for $40 and four years later sells it for $160, he will realize a

• A) dividend of $120.
• B) dividend of $200.
• C) capital gain of $120.
• D) capital gain of $160.

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Definitions:

Squatters Rights

Legal allowances that may permit a squatter to obtain title to land or property under certain conditions.

Capital of the Corporation

The financial resources or assets owned by a corporation, used for its business operations and growth.

Unit Owner

The legal owner of an individual unit within a multi-unit property, such as a condominium or cooperative building.

Registry System

A system for recording and tracking the ownership and transactions of assets, such as real estate or vehicles.