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Finra Series-6 Exam - Topic 5 Question 97 Discussion

Which of the following formulae is used to calculate the net dividend income per share of a mutual fund?
A) Subtract operating expenses from dividend and interest income and divide the result by the number of outstanding shares.
B) Divide gross investment income by the number of outstanding shares.
C) Subtract operating expenses from the income derived from dividends, interest, and short -term capital gains earned by the fund and divide the result by the number of outstanding shares.
D) Add dividends, interest, and short-term and long-term capital gains earned by the fund; subtract operating expenses; then divide the result by the number of outstanding shares.

Finra Series-6 Exam - Topic 5 Question 97 Discussion

Actual exam question for Finra's Series-6 exam
Question #: 97
Topic #: 5
[All Series-6 Questions]

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

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Suggested Answer: A

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

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Danica
7 months ago
I agree with C, but I’m surprised it’s not more straightforward!
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Rodrigo
8 months ago
Wait, D seems way too complicated for this.
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Shawnda
8 months ago
C sounds right, it includes all the income sources.
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Yesenia
8 months ago
I think B is too simple for net dividend income.
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Herman
8 months ago
It's definitely A! Operating expenses matter.
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Stephania
9 months 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.
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Mabel
9 months ago
I’m leaning towards option D because it mentions adding all types of income before subtracting expenses, which seems comprehensive.
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Yolande
9 months 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.
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Jutta
9 months 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.
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Dona
9 months 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.
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Yoko
9 months 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.
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Nancey
9 months 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.
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Carman
9 months 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.
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Rose
9 months 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.
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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.
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Felix
1 year ago
Let's go with C then. And maybe we can order that pizza after we finish this calculation!
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Carissa
1 year ago
I think D might be the right answer, but I could definitely go for a dividend-topped pizza too!
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Dorothea
1 year ago
I agree, C seems like the correct formula to calculate net dividend income per share.
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Staci
1 year 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!
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Frederick
1 year ago
I'm pretty sure it's option D, but it's always good to review your calculations just to be safe.
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Martina
1 year ago
I believe it's option A, you should definitely double-check your work before the exam.
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Aleta
1 year ago
I think option C is the correct formula to calculate net dividend income per share.
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Zoila
1 year 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.
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Eleni
1 year ago
Why do you think D is the correct answer?
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Billy
1 year 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.
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Mari
1 year ago
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.
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Rene
1 year ago
I agree, option C seems to be the most accurate formula for calculating net dividend income per share.
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Stephaine
1 year ago
I disagree, I believe the answer is D.
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Eleni
1 year ago
I think the answer is C.
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