Greg Purchased Stock in Bear Stearns and Co

question 72

Multiple Choice

Greg purchased stock in Bear Stearns and Co.at a price of $89 per share one year ago.The company was acquired by JP Morgan at a price of $10 per share.What is Greg's return on his investment?

• A)-88.76%
• B)-96.25%
• C)-79.00%
• D)-85.45%

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Definitions:

Miscellaneous Expense

Minor and irregular costs that do not naturally fit into other designated categories of expenses in financial accounting.

Incidentals

Minor or secondary expenses or costs that may occur in addition to the primary expenses.

Cash Burn

The rate at which a company spends its capital to finance overhead before generating positive cash flow from operations.

Cash Equivalents

Short-term, highly liquid investments with maturities of three months or less at the time of acquisition, easily convertible to known amounts of cash.