If a Stock Is Purchased for $30 a Share and Pays

question 9

Multiple Choice

If a stock is purchased for $30 a share and pays $5 per share in dividends a year, what selling price at the end of the year would result in a return of 50%?

• A) $60
• B) $40
• C) $35
• D) $15

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Definitions:

Payroll Tax Deductions

Amounts withheld from an employee's wages by an employer for taxes, including federal and state income tax and FICA taxes.

FUTA Tax Credit

A credit against Federal Unemployment Tax Act (FUTA) tax liability that employers can claim for amounts paid into state unemployment funds.

Life Insurance

A contract providing payment to designated beneficiaries upon the insured person’s death, offering financial protection against the loss of income.

Health Insurance

A type of insurance coverage that pays for medical and surgical expenses incurred by the insured or reimburses them for expenses from illnesses or injuries.