You Own 50 Shares of Auto Corporation That You Purchased

question 66

Multiple Choice

You own 50 shares of Auto Corporation that you purchased for $30 a share. The stock is currently selling for $50 a share, and you placed a stop loss order at $45. If the stock price drops to $35 a share what is your return on this investment?

• A) -30.0 percent
• B) 16.7 percent
• C) 50.0 percent
• D) 66.7 percent
• E) 150.0 percent

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Definitions:

Intermediate Product

An intermediate product refers to a good or service that is utilized in the production process of another good or service, rather than being sold directly to consumers.

Transfer Price

The price at which goods and services are sold between divisions within the same company.

Buying Division

A dedicated department within a company that is responsible for making all purchase-related decisions and transactions.

Selling Division

A segment of a business organization responsible for the external sales of the company’s products or services.