If Share Price Falls from $15 to $12 Per Share

question 41

Multiple Choice

If share price falls from $15 to $12 per share, and pays a dividend of $1 per share, what was the rate of return to shareholders?

• A) 13.33%
• B) -13.33%
• C) 16.67%
• D) -16.67%

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Definitions:

Economic Functions

The roles and operations of an economy, including production, distribution, and consumption of goods and services.

Price Mechanism

The way in which prices of goods and services affect the supply and demand dynamics within a market, guiding the allocation of resources.

Collecting Taxes

The process by which a government or its authority gathers money from citizens and businesses in the form of taxes.

Soviet Communism

A form of communism based on the ideologies of Marx and Lenin, implemented in the Soviet Union, characterized by the absence of private property, government ownership of all means of production, and the aim of establishing a classless society.