Use the Table for the Question(s)below

question 43

Multiple Choice

Use the table for the question(s) below.
Consider the following Price and Dividend data for General Electric Company:
-Assume that you purchased General Electric Company stock at the closing price on December 31,2008 and sold it after the dividend had been paid at the closing price on January 26,2009.Your capital gains rate (yield) for this period is closest to:

• A)0.75%
• B)0.70%
• C)-8.80%
• D)-8.15%

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Definitions:

Cash Basis

An accounting method recognizing revenues and expenses when cash is actually received or paid out, rather than when earned or incurred.

Selling and Administrative Expense

Expenses related to the selling of products and the management of the business, not directly tied to production.

Statement of Cash Flows

A financial report that summarizes the amount of cash and cash equivalents entering and leaving a company.

Income Tax Expense

The amount of income tax a company is obligated to pay to the government, based on its taxable income.