John Baker Bought BCE Stocks for $33 a Share One

question 109

Multiple Choice

John Baker bought BCE stocks for $33 a share one year ago.He sold the stock a year later for $36.50 a share.What was John's capital gains yield?

• A)3 percent
• B)3.50 percent
• C)4 percent
• D)9 percent
• E)10.6 percent

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Definitions:

Incremental Costs

The additional costs incurred when producing an additional unit of a product or service.

Fixed Manufacturing Costs

Costs that do not change with the level of production, such as rent, salaries, and insurance, which are incurred regardless of output volume.

Full Capacity

The maximum level of output that a company can sustain to make a product or provide a service.

Incremental Revenue

The additional revenue generated from a new business activity or decision.