An Investor Holds a Stock for One Year

question 44

Multiple Choice

An investor holds a stock for one year.She then receives a dividend of $10 and sells the stock for $120.If her return was 16%,at what price did she buy the stock?

• A) $103.45
• B) $64.80
• C) $139.20
• D) $112.07

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Definitions:

Intra-entity Transfers

Transfers of goods, services, or assets between divisions or units within the same company.

Voting Stock

Shares that give the shareholder the right to vote on matters of corporate policy and the election of the board of directors.

Foreign Corporation

A company that is incorporated under the laws of a country different from the country of its primary operations.

Inventory

The total amount of goods and materials held by a business for the purpose of sale or production, including raw materials, work-in-process, and finished goods.