Chapter 10: Risk and Return

When a company declares a dividend, shareholders generally receive

cash

If you buy 40 shraes of EP stock at $35 per share, your total investment in BP is

$1,400

If you invested $100 and made a total dollar return of $10 over the course of the year, your year-end total cash would be ____ if you sold the stock at the end of the year.

$110

If you receive a $2 dividend per share on your 100 shares, your total dividend income is

$200

What will the dividend income be on 1,000 shares of XYZ stock if XYZ distributes a $.20 per share dividend.

$200

If your total dollar return was $7 and your dividend was $2, then the price change on your stock must have been

$5

If you buy 100 shares of ABC stock at $5 per share, your total investment is

$500

The price of XYZ stock rises from $10 to $15. If you own 100 shares, your capital gain is ____.

$500

What will your capital gain be if you hold 40 shares of BP stock and the stock price rises from $27 to $40 per share?

$520

What is the maximum capital loss that you can incur if you bought 200 shares of TP Inc. for $32.

$6,400

If you buy a stock for $10 and later sell it for $16, you will have a

Capital gain of $6

a positive capital gain on a stock results from

an increase in price

What are two ways to make money by investing in stocks?

capital gains and dividends

The total dollar return is the sum of dividends and

capital gains or losses

The two potential wasy to make money as a stockholder are through _____ and captial appreciation.

dividends

Dividends are the _____ component of the total return from investing in a stock.

income