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Suppose an Investor Buys a Share of Stock for $200

question 162

Essay

Suppose an investor buys a share of stock for $200 and sells it for $220 after one year. At the end of that year, the dividend per stock is $5. The company has 250,000 shares outstanding and a total profit for the year of $1,000,000. Calculate the rate of return on this stock for the investor.


Definitions:

Soft Determinist

Someone who believes in determinism but also holds that human behavior can be free if it corresponds to the individual's desires, even if those desires are determined.

Character

The aggregate of features and traits that form the individual nature of a person or a thing.

Social Entity

An organization or system that exists within a society and influences it.

Relationships

The manner by which two or more ideas, items, or individuals are linked, or the condition of being linked.

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