Monday Morning, Michael Bought 700 Shares of a Stock at $18

question 69

Multiple Choice

Monday morning, Michael bought 700 shares of a stock at $18 per share. During that work week, the stock went up $1 per share on one day and dropped $5 per share on each of the other four days. Determine the value of the 700 shares by closing time on Friday.

• A) $699
• B) $25,900
• C) $-687
• D) $-700

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Definitions:

Retained Earnings

The portion of net income not distributed as dividends but retained by the company to reinvest in its business or to pay debt.

Net Income

The final income of a firm following the deduction of all expenditures, taxes, and interest from the gross revenue.

Dividends

Payments made by a corporation to its shareholder members, usually as a distribution of profits.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, revealing profit or loss.