You Purchased 100 Shares of Highlight Company for $20 Per

question 45

Multiple Choice

You purchased 100 shares of Highlight Company for $20 per share one year ago with a margin of 50%. The stock is currently selling for $28 per share and no dividends were ever paid. The broker charges an annual interest rate of 8% and a $100 commission on both the purchase and sale of these shares. What is your annual rate of return on this investment?

• A) 21%
• B) 47%
• C) 52%
• D) 60%
• E) 72%

---

Definitions:

Equivalent Unit

A method used in process costing that converts partially completed units into a number of fully completed units.

Process Costing

A costing method used in industries where production is continuous, allocating costs to products based on the processes or departments they pass through.

FIFO Method

An inventory valuation method where the first items acquired are the first ones sold, standing for "First In, First Out."

Circuit Prep Department

A specific division within a manufacturing or processing facility focused on preparing components for assembly or processing circuits.