If You Purchase 100 Shares of Ajax Corporation for $15

question 20

Multiple Choice

If you purchase 100 shares of Ajax Corporation for $15 a share and one year later sell it for $20 a share,what was your return if the stock paid $2 per share dividends? (Ignore commissions and trading fees.Round to the nearest whole percent.)

• A)10 percent
• B)33 percent
• C)47 percent
• D)40 percent

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Definitions:

Replacement Chain Method

A decision-making process for evaluating the cost-effectiveness of replacing an asset, considering the time span of replacements.

Cash Flow

The overall volume of capital movement into and away from a business, essentially influencing its financial fluidity.

Present Values

The present value of a future amount of money or series of payments, calculated using a designated interest rate.

Cash Inflows

Money or funds coming into a business or project, often as revenue, financing, or investment.