A person buys a share for $50 and sells it for $52 after a year. What is the total profit made by him from the share?
(I) A company pays annual dividend
(II) The rate of dividend is 25%
I agree with killer that the question is pretty vauge since it tells nothing about taxes and brokarage fees. taxes and brokarage fees are also part of share investment. therefore, it is E..
however we can identify the DPS rate, which equal to dividend rate (also called dividend yeild) times purchase price.
so E should not be a wrong answer.