Suppose the Price of One Share of a Particular Stock

question 56

Multiple Choice

Suppose the price of one share of a particular stock fell from $26.25 to $24.75 over the course of a year,and the stock paid a dividend of $0.90 per share during the same year.What was the total return on the share of stock?

• A) -5.7 percent.
• B) 9.1 percent.
• C) 2.4 percent.
• D) -2.3 percent.

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Definitions:

Form 1120

Form 1120 is the tax form used by corporations in the United States to report their income, gains, losses, deductions, and credits to the IRS.

Subchapter S Corporation

A form of corporation that meets specific Internal Revenue Code requirements, allowing profits to be passed directly to shareholders and avoid double taxation.

Shareholders

Individuals or entities that own shares in a corporation, and therefore have an interest in its performance and governance.

Trusts

Trusts are legal arrangements where assets are held by one party for the benefit of another, often used for estate planning, tax reduction, and wealth management purposes.