Assume Joe Invests a Total of $10,000 in a Company

question 157

Multiple Choice

Assume Joe invests a total of $10,000 in a company - $5,000 of which is his own money and $5,000 which he borrowed at a 10% interest rate.If the company's stock value increases by 20% in one year at which time Joe sells his shares of the stock, what is Joe's rate of return on his investment?

• A)10% 
• B)15% 
• C)20% 
• D)30%

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Definitions:

General Framework

A broad system or structure that provides guidance or support for activities, processes, or methodologies within a particular domain.

Ethical Issue

A problem or situation that requires a person or organization to choose between alternatives that must be evaluated as right (ethical) or wrong (unethical).

General Framework

A foundational structure, set of guidelines, or system that serves as a basis for developing something more specific or detailed.

Ethical Issue

A moral dilemma that requires an individual or organization to choose between alternatives that must be evaluated as right (ethical) or wrong (unethical).