Finra Exam Series-6 Topic 5 Question 97 Discussion

Actual exam question for Finra's Series-6 exam

Question #: 97
Topic #: 5

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

ASubtract operating expenses from dividend and interest income and divide the result by the number of outstanding shares.

BDivide gross investment income by the number of outstanding shares.

CSubtract 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.

DAdd 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.

Show Suggested Answer

Suggested Answer: A

Since Joan is a customer of GetErDone, GetErDone must provide her with a notification of its privacy policies annually and provide her with information on how to mandate that it not share her nonpublic personal information with nonaffiliated third parties. GetErDone may not disclose any information about Jean, who is not yet a customer of the firm, unless the broker -dealer has provided Jean with its privacy policy and given her the opportunity to opt out of its ability to share her information with nonaffiliated third parties. GetErDone is not required to have provided Jean with a copy of its privacy policy when she inquired about opening an account, but it will need to provide her with one when/if she becomes a customer.

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

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Myra

22 days 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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Staci

1 months 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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Aleta

27 days ago

I think option C is the correct formula to calculate net dividend income per share.

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Zoila

1 months 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

2 months ago

Why do you think D is the correct answer?

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Billy

2 months 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.

upvoted 0 times