Suppose You Purchase One Share of the Stock of Cereal

question 27

Multiple Choice

Suppose you purchase one share of the stock of Cereal Correlation Company at the beginning of year 1 for $50. At the end of year 1, you receive a $1 dividend and buy one more share for $72. At the end of year 2, you receive total dividends of $2 (i.e., $1 for each share) and sell the shares for $67.20 each. The time-weighted return on your investment is

• A) 10.0%.
• B) 8.7%.
• C) 19.7%.
• D) 17.6%.

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Definitions:

Fines

Fines are monetary penalties imposed as punishment for an infringement or violation of laws, regulations, or rules.

Taft-Hartley Act

Also known as the Labor Management Relations Act, 1947, it restricted the activities and power of labor unions in the United States.

Unionization Rights

Legal rights allowing employees to form, join, or assist labor unions for collective bargaining purposes.

Supervisors

Individuals within an organization responsible for overseeing the work of employees and ensuring that tasks are carried out efficiently and effectively.