Periodic payments of dividends are subtracted from return to stockholders to...

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Periodic payments of dividends are subtracted from return to stockholders to calculate

A. gain on spot contract

B. loss on spot contract

C. gain on capital

D. loss on capital

Answer: Option C

Solution (By Examveda Team)

Periodic payments of dividends are subtracted from return to stockholders to calculate gain on capital. Capital gain is a rise in the value of a capital asset (investment or real estate) that gives it a higher worth than the purchase price.

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