Suppose a Stock Had an Initial Price of $74 Per

question 81

Multiple Choice

Suppose a stock had an initial price of $74 per share, paid a dividend of $0.80 per share during the year, and had an ending share price of $76. What was the capital gains yield?

• A) 2.70 percent
• B) 3.29 percent
• C) 3.78 percent
• D) 4.01 percent
• E) 4.23 percent

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Definitions:

Production Estimates

Forecasts or predictions about the quantity of products that will be produced over a specific period.

Sales Estimates

Projected figures of the amount and value of sales expected to be achieved in a future period.

Units Manufactured

The total number of units produced by a company during a specific period.

Master Budget

A comprehensive financial planning document that includes all of the lower-level budgets within a company, projecting its financial activities.