Nico Bought 100 Shares of Cisco Systems Stock for $24

question 112

Essay

Nico bought 100 shares of Cisco Systems stock for $24.00 per share on January 1, 2002. He received a dividend of $2.00 per share at the end of 2002 and $3.00 per share at the end of 2003. At the end of 2004, Nico collected a dividend of $4.00 per share and sold his stock for $18.00 per share. What was Nico's realized holding period return? What was Nico's compound annual rate of return? Explain the difference?

Differentiate the causes and outcomes of employment discrimination.

Understand the consequences of employment discrimination on wages and economic efficiency.

Compare wage differentials across different groups of workers and the factors contributing to them.

Understand different compensation structures and their impact on employee performance.

---

Definitions:

New Equilibrium

The state reached when market forces realign, resulting in a new balance between supply and demand after a disturbance.

Total Surplus

The aggregate net benefit to society derived from the production and consumption of a good or service, comprising both consumer and producer surplus.

Equilibrium Price

The market price at which the quantity of goods supplied is equal to the quantity of goods demanded, achieving a state of market balance.

Consumer Surplus

The division between the total financial commitment consumers are willing to make for a product or service and the amount they actually contribute.