Use the Following Information for Questions

question 16

Multiple Choice

Use the following information for questions:
Pluto Co.borrowed $25,000 on September 1, 2010 on a nine-month, 8% note.Interest and principal are due at maturity.
-The total liability reflected on the December 31, 2010 balance sheet concerning this note would be closest to:

• A)$25,000
• B)$25,667
• C)$26,500
• D)$27,000

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Definitions:

Capital Gains Yield

The price appreciation component of the total return on an investment, excluding dividends.

Dividend

A portion of a company's earnings distributed to its shareholders, typically in the form of cash or additional stock.

Shares

Ownership stakes in a company or financial asset which entitle the holder to a proportional share of the profits, distributed as dividends, if they are announced.

Standard Deviation

A statistical measure of the dispersion or variability of a set of data points around the mean, commonly used to quantify the amount of variation.