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

question 9

Multiple Choice

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

• A) $60
• B) $40
• C) $35
• D) $15

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Definitions:

Consolidated Financial Statements

are financial statements that aggregate the financial position and results of an entity and its subsidiaries, presenting them as a single economic unit.

Ending Inventory

The total value of all inventory that a company has on hand at the end of its fiscal year, including goods ready for sale and those still in the production process.

Amortization

Amortization refers to the process of gradually reducing the value of an intangible asset or a loan over a specified period of time.

Unrealized Profits

Refers to the potential profit from an investment that has not yet been sold or cashed in, thus not recorded in the financial statements as actual gain.