Final answer:
The question focuses on the returns from investing in stock, highlighting two forms of earnings: dividends and capital gains. MS, a computer company, pays a $5 dividend per share, contributing to the entire return an investor receives alongside any capital appreciation.
Step-by-step explanation:
Investing in stocks involves receiving a potential rate of return via two primary means: dividends and capital gains. The volatility of stocks can be quite extreme, with prices fluctuating significantly over short periods. For instance, mature companies like Netflix experienced their stocks soar in value, drop, and then climb back up over different periods. Dividends, while once a larger portion of the return on investment, have generally decreased in contribution from the 1990s onwards, making capital gains a more significant part of the potential earnings for an investor.
When it comes to the specific company mentioned, MS, the question pertains to the dividends it pays out which is $5 per share. This means that the investor would receive this amount per share owned, providing a return in addition to any capital gains they might achieve if the stock price rises above the purchase price of $100 per share.