Last Year, Kathy Purchased 2 Shares of Stock a at $60

question 41

Multiple Choice

Last year, Kathy purchased 2 shares of stock A at $60 a share. At the same time, she purchased 3 shares of stock B at $40 a share. Today, stock A is valued at $70 a share and stock B is worth $47 a share. What is the relative strength of stock A as compared to stock B?

• A) .84
• B) .88
• C) .99
• D) 1.04
• E) 1.14

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Definitions:

Administrative

Relates to the daily operations and management tasks within an organization, including paperwork and office procedures.

Fixed Cost Element

A cost that does not vary with the level of production or sales, such as rent, salaries, and insurance expenses.

Mixed Cost

A cost that contains both fixed and variable components and changes with the level of activity, but not proportionately.

CVP Analysis

Cost-Volume-Profit (CVP) analysis is a managerial accounting technique used to determine the effects of changes in costs and volume on a company's profits.