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What Return on Investment Would You Earn If You Bought

question 29

Multiple Choice

What return on investment would you earn if you bought a stock on 1/1/16 for $100, received a 1% per quarter dividend and sold the stock on 1/2/2017 for $107?

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Definitions:

Specific Costs

Costs that can be directly attributed to a particular project, department, or activity.

Required Return

The minimum return that keeps an investor in a particular stock. Generally a function of the risk perceived in the investment.

Target Capital Structure

The ideal mix of debt, equity, and other financing sources a company aims to maintain over time.

Invested Funds

Money allocated by individuals or organizations to stocks, bonds, or other investments with the expectation of earning a return.

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