Federico Paid $86

question 15

Multiple Choice

Federico paid $86.70 for a stock one year ago. Today he sold the stock for $88.20. Over the year, Federico received four quarterly dividends of $0.60 each. What was the dividend yield on this investment?

• A) 0.69%
• B) 1.02%
• C) 2.77%
• D) 4.42%
• E) 4.50%

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Definitions:

Factory Overhead

Factory overhead refers to the indirect manufacturing costs not directly tied to the production of goods, such as utilities or management salaries.

Machine Hours

The total operating time of a machine, used as a basis for allocating manufacturing overhead.

Conversion Costs

Costs incurred to convert raw materials into finished products, generally including direct labor and manufacturing overhead.

Materials Cost

The cost of raw materials and components used to create a product.