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:

Collusion

An agreement between parties, often secretly, to limit open competition by deceiving or defrauding others of their legal rights, or to obtain an objective forbidden by law typically by defrauding or gaining an unfair market advantage.

Fraudulent

Deliberately deceitful behavior intended to gain an unfair or unlawful advantage, which can encompass a wide range of activities including false representation and falsification of documents.

Deceitful

Characterized by dishonesty or manipulation to obscure the truth for personal or professional gain.

Conflicts

Situations where perceived or actual incompatible interests, beliefs, or actions lead to opposition or discord between individuals or groups.