Table 5-5 Gives Data on the Consumer Price Index for a Particular

question 134

Multiple Choice

Table 5-5 gives data on the consumer price index for a particular city. The base year is 2002. Use the table to answer questions .
Table 5-5

-Refer to Table 5-5. What is the inflation rate in 2004?

• A) 20.8%
• B) 22%
• C) 31.5%
• D) 30%

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Definitions:

Cash Dividends

Payments made by a company to its shareholders out of its profits or reserves.

Market Price

The current price at which an asset or service can be bought or sold in the market.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, usually with dividends that are paid out before those to common stockholders.

Basic Earnings Per Share

A calculation that shows a company's profitability per share of stock by dividing net income by the weighted average number of common shares outstanding.