Consider the Following Price and Dividend Data for Quicksilver Inc

question 104

Multiple Choice

Consider the following price and dividend data for Quicksilver Inc.: Assume that you purchased Quicksilver's stock at the closing price on December 31, 2004 and sold it after the dividend had been paid at the closing price on January 26, 2005. Your capital gains rate (yield) for this period is closest to ________.

• A)0.93%
• B)1.02%
• C)-3.85%
• D)-2.93%

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Definitions:

Average Variable Cost

The variable cost per unit of output.

Short-Run Marginal Cost

The cost incurred by producing one more unit of a product or service in the short term, where some inputs are fixed.

Average Variable Cost

The cost per unit of output that varies with the level of production, excluding fixed costs.

Market Power

The ability of a firm or group of firms to manipulate the price of goods or services in the market, often due to lack of competition.