If a Stock Is Purchased for $25 Per Share and Held

question 14

Multiple Choice

If a stock is purchased for $25 per share and held one year, during which time a $3.50 dividend is paid and the price climbs to $28.25, the nominal rate of return is:

• A)13.00 percent.
• B)14.00 percent.
• C)23.01 percent
• D)27.00 percent.

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Definitions:

Business Expenses

Costs incurred in the ordinary course of business, including operational costs, utilities, salaries, and rent.

Tactical Plans

Short-range plans designed to implement the activities and objectives specified in the strategic plan.