In January, Suppose That a Share of Stock in Meyer

question 198

Multiple Choice

In January, suppose that a share of stock in Meyer, Inc. had a price of $50 and that each share entitled its owner to $2 of Meyer, Inc.'s profit. During the year, the price of a share of Meyer's stock rose to $100. The interest rate paid on the share in January was ________ percent.

• A) 2
• B) 0.02
• C) 4
• D) 25

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Definitions:

Machinery

Assets consisting of tools, equipment, and facilities used in production or manufacturing processes.

Depreciation Expense

The portion of the cost of a fixed asset deducted from revenue of the period, reflecting the use and wear and tear of the asset.

Cash Dividends

A rephrase: A form of profit-sharing where a corporation distributes a portion of its earnings to shareholders in the form of cash.