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:

Partnership Earnings

The share of profits or losses generated by a partnership that is allocated to each partner according to their agreement.

Federal Income Tax

A tax levied by the federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.

Incoming Partner

A new member joining a partnership, bringing capital to the business in exchange for a share of the partnership's profits and losses.

Initial Investment

The amount of money used to start a project, purchase an asset, or invest in a business for the first time.