Answer:
Dividend per share = $2
Explanation:
The total yield or return on a stock consists of two components namely dividend yield and capital gains yield.
Total yield or return = Dividend yield + Capital gains yield
If the total return is 15% while the capital gains yield was 10%, the dividend yield on the stock will be,
0.15 = Dividend yield + 0.1
0.15 - 0.1 = Dividend Yield
Dividend Yield = 0.05 or 5%
Thus, dividend income per share will be,
0.05 = Dividend per share / 40
0.05 * 40 = Dividend per share
Dividend per share = $2
