Excelsior Share Are Currently Selling for $25

question 17

Multiple Choice

Excelsior share are currently selling for $25.00 each. You bought 200 shares one year ago at $24 and received dividend payments of $1.50 per share. What was your percentage rate of return?

• A) 10.42%
• B) 4.17%
• C) 6.25%
• D) 110.42%
• E) 104.67%

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Definitions:

Profit-maximizing

A strategic approach aimed at increasing a firm's profits to the highest possible level given its production costs and market conditions.

Purely Competitive

A market configuration where numerous small businesses produce the same goods and face no entry or exit obstacles.

Pure Competition

A market structure characterized by a large number of buyers and sellers, homogeneous products, and the absence of barriers to entry or exit for firms.