If a Stock Is Purchased for $30 a Share and Pays

question 127

Multiple Choice

If a stock is purchased for $30 a share and pays $5 per share in dividends per year, what selling price at the end of the year would result in a return of 50 percent?

• A)$60
• B)$40
• C)$35
• D)$15

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Definitions:

Price

The amount of money expected, required, or given in payment for something; it acts as a signal for scarcity or abundance of a product.

Budget Line

A depiction showcasing all feasible combinations of two articles that can be purchased, provided there's a fixed budget and the prices remain the same.

Money Income

Money income is the total income received by a household or individual in the form of currency or in transactions, excluding non-monetary benefits.