Assume a Stock Is Initially Priced at $50, and Pays

question 14

Multiple Choice

Assume a stock is initially priced at $50, and pays an annual $2 dividend. An investor uses cash to pay $25 a share and borrows the remaining funds at a 12 percent annual interest. What is the return if the investor sells the stock for $55 at the end of one year?

• A)50 percent
• B)30 percent
• C)10 percent
• D)16 percent
• E)8 percent

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Definitions:

2 Or 3 Years Old

A developmental stage in children characterized by rapid growth in language, motor skills, and understanding of the world around them.

Word Superiority Effect

A phenomenon where letters are more easily recognized and processed in the context of a word than as isolated letters or in non-words.

Screen

To examine or evaluate something or someone in order to identify certain characteristics, often used in contexts such as medical screening or selection processes.

Letters

Characters that are used in an alphabet to represent sounds and form words.