You Purchased a Stock for $46

question 21

Multiple Choice

You purchased a stock for $46.70 a share and resold it one year later.Your total return for the year was 11.2 percent and the dividend yield was 2.8 percent.At what price did you resell the stock?

• A)$42.78
• B)$50.62
• C)$51.93
• D)$52.08
• E)$57.54

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Definitions:

Hypothetical Consumer

A model or theoretical individual used in economics and marketing to represent and analyze consumer behavior and decision-making processes.

Utility Maximization

The economic principle that individuals or firms attempt to allocate their resources in a manner that maximizes their satisfaction or profit.

Marginal Utility

The supplementary enjoyment a consumer experiences when they consume an extra unit of a good or service.

Budget Constraints

Budget constraints represent the limitations on the spending choices of consumers based on their income and the prices of goods and services.