Joanna Robertson Bought a Share of XYZ Corp

question 34

Multiple Choice

Joanna Robertson bought a share of XYZ Corp. at $200 last year. She was paid a dividend of $30 during the same year. However, the same share is trading at $280 this year. Calculate Joanna's capital gains percent yield if she sells the shares at $280.

• A) 80%
• B) 15%
• C) 40%
• D) 28.57%

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Definitions:

Utility-Maximizing

The process by which individuals choose consumption bundles that will give them the greatest amount of satisfaction or utility.

Diminishing Marginal Utility

The decrease in satisfaction or usefulness as additional units of a product are consumed.

Staples

Basic or essential food items or goods that are widely used and regularly consumed by households.

Paper Clips

Tiny segments of twisted wire or plastic designed to keep pages of paper attached.