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

Question

Quizplus · Accepted Answer

Compute purchase price,P₀= $9,590/500 = $19.18 Dividend is (1.08 x $9,590)- (500 x $18.64)all divided by 2,000 (which is 500 x 4 quarters)= $0.5186

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