Use an Equation to Solve the Problem $5 \%$ How Much Did the Investor Pay for the 100

question 29

Multiple Choice

Use an equation to solve the problem.
-On Monday, an investor bought 100 shares of stock. On Tuesday, the value of the shares went up $5 \%$ . How much did the investor pay for the 100 shares if he sold them Wednesday morning for $\$ 1470.00$ ?

• A) \(\$ 1543.50\)
• B) \(\$ 1420.00\)
• C) \(\$ 1450.00\)
• D) \(\$ 1400.00\)

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Definitions:

Debt-Equity Ratio

A ratio demonstrating the relative amounts of shareholders' equity versus debt financing in a corporation's asset base.

Fixed Assets

Tangible assets that are held by an entity for long-term use and are not expected to be converted into cash in the short term.

Plug Variable

A financial modeling technique where an unknown variable is calculated by ensuring that multiple financial statements are in balance, often used to solve for desired financing or investment levels.

Pro Forma Statement

A financial statement based on hypothetical assumptions or projections, often used in planning and decision-making processes to forecast future financial positions or results.