Which of the Following Statements Is True for a Stock

question 62

Multiple Choice

Which of the following statements is true for a stock that sells now for $60,pays an annual dividend of $4.00,and experienced a 20% return on investment over the past year? Its price one year ago was:

• A) $42.00.
• B) $46.15.
• C) $48.46.
• D) $53.33.

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Definitions:

Marginal Product

The additional output derived from employing one more unit of a particular input, while other inputs are held constant.

Average Product

The average product is calculated by dividing the total output produced by the quantity of inputs used, measuring overall input efficiency.

Decreasing

A process or trend characterized by reduction or decline in size, amount, or degree.

Labor's Productivity Growth

Refers to the increase in the amount of goods and services produced by one hour of labor.