Suppose a Stock Had an Initial Price of $80 Per

question 77

Multiple Choice

Suppose a stock had an initial price of $80 per share,paid a dividend of $1.35 per share during the year,and had an ending share price of $87.What was the capital gains yield?

• A)1.55 percent
• B)1.69 percent
• C)8.05 percent
• D)8.75 percent
• E)10.44 percent

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Definitions:

Share Exchanges

Transactions where companies exchange their own shares for shares of other companies to consolidate ownership interests or form strategic partnerships.

Officer Removed

Refers to the action of removing a person from an official position within an organization, typically due to misconduct or failure to perform duties.

Derivative Suit

A lawsuit brought by a shareholder on behalf of a corporation against a third party, often an insider of the corporation, alleging harm to the corporation.

Disinterested Directors

Board members who do not have a personal or financial stake in the decisions being made, ensuring unbiased governance and compliance.