Finra Series-6 Exam - 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

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

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Danica

6 months ago

I agree with C, but I’m surprised it’s not more straightforward!

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Rodrigo

6 months ago

Wait, D seems way too complicated for this.

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Shawnda

6 months ago

C sounds right, it includes all the income sources.

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Yesenia

7 months ago

I think B is too simple for net dividend income.

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Herman

7 months ago

It's definitely A! Operating expenses matter.

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Stephania

7 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

7 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

7 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

7 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

7 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

7 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

7 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

8 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

8 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

11 months ago

Let's go with C then. And maybe we can order that pizza after we finish this calculation!

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Carissa

11 months 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

11 months 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

12 months 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

12 months 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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