Common Stock Is Held for Two Years, During Which Time

question 27

Multiple Choice

Common stock is held for two years, during which time it receives an annual dividend of $10.The stock was sold for $100 and generated an average annual return of 16 percent.What price was paid for the stock?

• A)$61.60
• B)$64.80
• C)$88.00
• D)$90.90 .32 =

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Definitions:

Ending Inventory

The total value of goods available for sale at the end of an accounting period, calculated for reporting and taxation purposes.

Cost of Goods Sold

Costs directly related to creating products that a company offers for sale.

Net Income

The amount of earnings left over after all expenses have been deducted from revenue, indicating the financial profitability of a business.