Mark Uses His Own Funds to Purchase a Stock Priced

question 34

Multiple Choice

Mark uses his own funds to purchase a stock priced at $70. He thinks he can sell the stock for $100 after one year. What is Mark's estimated return on the stock?

• A)30.00 percent
• B)- 42.86 percent
• C)- 30.00 percent
• D)42.86 percent
• E)None of these are correct.

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Definitions:

Scorched Earth Policy

A defensive strategy used by companies to avoid hostile takeovers by making themselves less attractive to the acquirer.

Crown Jewels

Historically significant pieces of regalia, including crowns, sceptres, orbs, and other ornaments, used at the coronation of a monarch and representing royal authority.

Takeover Defense

Strategies employed by a target company to prevent or discourage unwanted acquisition attempts.

Unused Net Operating Losses

Tax deductions that occur when a company's allowable tax deductions are greater than its taxable income within a tax period, which can be carried over to reduce taxable income in future years.