Register
What is the term for a portion of a company's profit paid to common and preferred shareholders? For example: a stock selling for $20 per share has an annual ________ of $1 per share, yielding the investor
69,534 views
11 votes
11 votes
What is the term for a portion of a company's profit paid to common and preferred shareholders? For example: a stock selling for $20 per share has an annual ________ of $1 per share, yielding the investor guaranteed gains of 5% annually.

User Andrei Arsenin
by
2.8k points

1 Answer

21 votes
21 votes

Answer:

Dividend

Step-by-step explanation:

The dividend is the amount of the portion that should be paid to the common and preferred shareholders

Like in the question it is mentioned that the stock has been sold for $20 per share that contains the annual dividend of $1 per share where the investor guaranteed of gaining 5% on annual basis

So it is a dividend

The same is relevant and considered too

User Nik Kober
by
2.9k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

1.6m questions

2.0m answers

Other Questions

If the rate of inflation in Japan dramatically increases while the rate of inflation in the United States remains constant, then a. the demand curve for dollars shifts to the left. b. the demand curve
Kylie is risk averse and has $1,000 with which to make a financial investment. She has three options. Option A is a risk-free government bond that pays 5 percent interest each year for two years. Option
Elroy Rocket is entering his senior year as an accounting major and has a number of options for his summer break. His options for the 3 month break follow: (1) Work full time at a local accounting firm
In January of the current year, Dora made a gift of stock to her granddaughter. At the time of the gift, the stock was worth $15,000. Several months later in the same year after the gift, a $500 dividend
Jillian Diaz receives a regular salary of $1,500 a month and is entitled to overtime pay at the rate of one and one-half times the regular hourly rate for any time worked in excess of 40 hours per week.
Link Copied!