You Purchase Shares of XYZ Company at the Beginning of the Year

question 148

Multiple Choice

You purchase shares of XYZ company at the beginning of the year for $20 per share.After receiving dividends of $2 per share,you sell the stock for $24 per share at the end of the year.What is your rate of return of the stock for the year?

• A)20%
• B)10%
• C)30%
• D)-10%

---

Definitions:

Euro

The official currency used by 19 of the 27 European Union countries, also known as the eurozone.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations using its current assets.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within a year's time, including cash, inventory, and receivables.

Current Liabilities

Short-term financial obligations that are due within one year or within a normal operating cycle.