You Are Looking at a Stock Quotation in the Newspaper

question 26

Multiple Choice

You are looking at a stock quotation in the newspaper and read that its "net change" is +2.5.This means that

• A)the difference between its high price and low price for the day was $2.50.
• B)its closing price was $2.50 higher than its closing price of the previous trading day.
• C)over the past 12 months the stock's highest price is 2.5 times its lowest price.
• D)its dividend yield this year is 2.5% higher than its dividend yield last year.

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Definitions:

Year 2

Typically refers to the second year in a given context, such as financial reporting, analysis, or planning.

Variable Costing

An accounting method that only includes variable production costs (costs that change with production levels) in product costs.

Unit Product Cost

The total cost associated with manufacturing a single unit of product, which includes direct materials, direct labor, and overhead.

Unit Product Cost

The total cost (including materials, labor, and overhead) divided by the number of units produced, indicating the cost to produce each unit of product.