You Purchased a Share of Stock for $58

question 7

Multiple Choice

You purchased a share of stock for $58.00. At the end of a quarter, the stock paid a dividend of $0.75, and you sold it for $63.00 right after receiving the dividend.
-Refer to the information above. What was your total rate of return on this investment? Round your answer to the nearest tenth of a percent.

• A)8.6%
• B)7.2%
• C)10.9%
• D)9.9%

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Definitions:

Contribution Format

A financial statement layout that separates fixed costs from variable costs to highlight the contribution margin of a business.

Absorption Costing

A financial tracking method that brings together all costs of production—direct materials, direct labor, and all overhead, both variable and fixed—inclusion in the price of a product.

Variable Costing

An accounting method that includes only variable production costs (materials, labor, and overhead) in product costs.

Net Incomes

The total earnings of a company after all expenses and taxes have been deducted from revenues, indicating profitability over a specific period.