A Stock That Went from $40 Per Share at the Beginning

question 75

Multiple Choice

A stock that went from $40 per share at the beginning of the year to $45 at the end of the year and paid a $2 dividend provided an investor with a ____ return.

• A)8.75%
• B)14%
• C)17.5%
• D)7%
• E)none of the above

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Definitions:

Overall Market

Overall market refers to the combined marketplace of all buyers and sellers in a given sector or industry, often considered in terms of total sales, demand, or size.

Market Share

The portion of a market controlled by a particular company or product, often expressed as a percentage.

Margin

The difference between the selling price of a product or service and the cost associated with producing it, usually expressed as a percentage of sales.

Marginal Subcontracting Cost

The additional cost incurred for each unit of production outsourced to a third party, rather than produced in-house.