Kayla Would Like to Purchase a Stock Priced at $30

question 44

Multiple Choice

Kayla would like to purchase a stock priced at $30. The stock is not expected to pay any dividends in the coming year. She thinks she can sell the stock for $36 after one year. Her estimated return on the stock would be ____ percent.

• A)6
• B)10
• C)15
• D)20

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Definitions:

Ordering Cost

Expenses incurred in placing and processing orders for products or materials, including administrative costs and the cost of receiving and inspecting the items.

Carrying Cost

The total cost of holding inventory, including storage costs, insurance, and depreciation, among others.

Economic Order Quantity Model

A formula used in inventory management to determine the optimal order size that minimizes total inventory costs.

Holding Cost

The expenses associated with keeping inventory in stock, such as storage, insurance, and spoilage costs.