A Common Stock Is Held for 2 Years,during Which Time

question 84

Multiple Choice

A common stock is held for 2 years,during which time it receives an annual dividend of $20.The stock was sold for $100 and generated an average annual return of 32%.What price was paid for the stock?

• A) $61.60
• B) $64.80
• C) $88.00
• D) $90.91

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Definitions:

Roof Tiles

Specially designed pieces, typically made of clay, concrete, metal, or synthetic materials, used to cover roofs.

Destination Contract

A contract specifying that the seller will bear the risk and the cost of delivering goods to a specific location.

Shipment Contract

A contractual agreement where the seller is obligated to transport goods to a specific destination, with risk passing to the buyer when the goods are delivered to the carrier.

F.O.B. Hilltop Farm

A shipping term indicating that the buyer assumes responsibility for the goods once they are shipped from Hilltop Farm.