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