You Purchase a Share of Boeing Stock for $90

question 32

Multiple Choice

You purchase a share of Boeing stock for $90.One year later, after receiving a dividend of $3, you sell the stock for $92.What was your holding-period return?

• A)4.44%
• B)2.22%
• C)3.33%
• D)5.56%

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Definitions:

Variable Production Cost

Variable production costs are expenses that change in proportion to the volume of goods or services produced, such as raw materials and labor costs.

Fixed Production Cost

Costs that do not vary with the level of production or sales volume, such as rent, salaries, and equipment depreciation.

Variable Selling Expense

Costs related to selling products that vary with the level of sales activity, such as commissions.

Net Operating Income

A company's income after operational expenses have been deducted but before taxes and interest are considered.