Assume Joe Invests a Total of $10,000 in a Company-$5,000

question 99

Multiple Choice

Assume Joe invests a total of $10,000 in a company-$5,000 of which is his own money and $5,000 of which he borrowed at a 10 percent interest rate.If the company's stock value increases by 20 percent in one year at which time Joe sells his shares of the stock, what is Joe's rate of return on his investment?

• A)10 percent
• B)15 percent
• C)20 percent
• D)30 percent

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Definitions:

Confirming

The act of acknowledging and validating another person's feelings, thoughts, or experiences.

Disconfirming

Communication that negates or invalidates the self-esteem, feelings, or perceptions of another person.

Accurate Responding

The act of providing responses that are correct and appropriate to the context or question posed.

Frittata

A type of Italian egg-based dish similar to an omelette or crustless quiche, enriched with additional ingredients such as meats, cheeses, or vegetables.