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Finra Series-6 Exam - Topic 5 Question 97 Discussion

Posted by Mertie on Feb 08, 2025 at 03:59 PM

Which of the following formulae is used to calculate the net dividend income per share of a mutual fund?

Suggested Answer: A

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29 comments · newest first
DA
Danica 11 months ago
I agree with C, but I’m surprised it’s not more straightforward!
RO
Rodrigo 11 months ago
Wait, D seems way too complicated for this.
SH
Shawnda 12 months ago
C sounds right, it includes all the income sources.
YE
Yesenia 12 months ago
I think B is too simple for net dividend income.
HE
Herman 1 year ago
It's definitely A! Operating expenses matter.
ST
Stephania 1 year ago
I’m a bit confused about whether to include short-term capital gains in the calculation. I thought they were part of the total income, but I can't remember clearly.
MA
Mabel 1 year ago
I’m leaning towards option D because it mentions adding all types of income before subtracting expenses, which seems comprehensive.
YO
Yolande 1 year ago
I remember a practice question that focused on calculating net income, and I feel like it was similar to option C, but I can't recall the specifics.
JU
Jutta 1 year ago
I think the formula involves subtracting expenses from income, but I'm not sure if it's just dividends and interest or if it includes capital gains too.
DO
Dona 1 year ago
This is a classic mutual fund question. I remember learning the formula for net dividend income per share in my finance class. I'm pretty confident option B is the correct answer here.
YO
Yoko 1 year ago
Hmm, I'm a little unsure about this one. There are a few different income sources mentioned, so I want to make sure I'm not missing anything important. I'll carefully review each option before selecting my answer.
NA
Nancey 1 year ago
I've got this! The key is subtracting the operating expenses from the total income sources, then dividing by the number of shares. Option A looks good to me.
CA
Carman 1 year ago
Okay, let me think this through. I know mutual funds distribute their net investment income to shareholders, so the formula has to account for that. I'm leaning towards option C, but I'll double-check the details.
RO
Rose 1 year ago
This seems like a straightforward calculation, but I want to make sure I understand the key components. I'll need to focus on the specific formula mentioned in the question.
MY
Myra 1 year ago
You know, this question is making me hungry. I could really go for a nice dividend-topped pizza right about now. Anyway, I think C is the winner here.
FE
Felix 1 year ago
↳ replying to Myra
Let's go with C then. And maybe we can order that pizza after we finish this calculation!
CA
Carissa 1 year ago
↳ replying to Myra
I think D might be the right answer, but I could definitely go for a dividend-topped pizza too!
DO
Dorothea 1 year ago
↳ replying to Myra
I agree, C seems like the correct formula to calculate net dividend income per share.
ST
Staci 2 years ago
Hmm, I was kinda leaning towards option D, but now I'm not so sure. Guess I'll have to double-check my work on this one. Can't afford to get it wrong on the exam!
FR
Frederick 1 year ago
↳ replying to Staci
I'm pretty sure it's option D, but it's always good to review your calculations just to be safe.
MA
Martina 1 year ago
↳ replying to Staci
I believe it's option A, you should definitely double-check your work before the exam.
AL
Aleta 2 years ago
↳ replying to Staci
I think option C is the correct formula to calculate net dividend income per share.
ZO
Zoila 2 years ago
Yeah, I agree with Billy. Option C is the way to go. The other options don't quite capture the full picture of what's needed to calculate the net dividend income per share.
EL
Eleni 2 years ago
Why do you think D is the correct answer?
BI
Billy 2 years ago
I think option C is the correct answer here. It specifically mentions subtracting operating expenses from the income derived from dividends, interest, and short-term capital gains, which is the formula for calculating the net dividend income per share.
MA
Mari 1 year ago
↳ replying to Billy
Yes, option C makes the most sense because it takes into account both the income and the expenses to get the net dividend income per share.
RE
Rene 1 year ago
↳ replying to Billy
I agree, option C seems to be the most accurate formula for calculating net dividend income per share.
ST
Stephaine 2 years ago
I disagree, I believe the answer is D.
EL
Eleni 2 years ago
I think the answer is C.
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