Use the Table for the Question(s)below

question 86

Multiple Choice

Use the table for the question(s) below.
Consider the following price and dividend data for Ford Motor Company:

-Assume that you purchased Ford Motor Company stock at the closing price on December 31,2004 and sold it after the dividend had been paid at the closing price on January 26,2005.Your capital gains rate (yield) for this period is closest to:

• A)0.70%
• B)0.75%
• C)-8.80%
• D)-8.15%
• E)1.25%

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Definitions:

Variable Costing

An accounting practice that only factors in variable production expenses (like direct materials, direct labor, and variable manufacturing overhead) into the cost of goods.

Unit Product Cost

The total cost (including materials, labor, and overhead) divided by the number of units produced, representing the cost to produce a single unit of product.

Variable Costing

A costing method that includes only variable costs—direct materials, direct labor, and variable manufacturing overhead—in product cost calculation, excluding fixed overhead.

Net Operating Income

Net operating income is the profit generated from a company's normal business operations, excluding expenses and revenues from non-operating activities.