A Stock Quote of 30.5 Means

question 15

Multiple Choice

A stock quote of 30.5 means

• A) the stock is down 30.5 cents per share from yesterday's price.
• B) the stock is selling at $30.50 per share.
• C) the stock is selling at 30.5 cents per share.
• D) the stock is up 30.5 cents per share from yesterday's price.
• E) the stock will be selling for 30.5 cents per share for the next 5 days.

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Definitions:

Degree of Operating Leverage

A financial ratio that measures the sensitivity of a company's operating income to its sales, indicating the potential for higher returns or risks.

Sales Decrease

A reduction in the quantity or value of items sold by a business within a particular period.

Financial Break-Even

Financial break-even is the point at which total revenues exactly cover total costs, leaving the business with neither profit nor loss, focusing on financial stability.

Initial Investment

The amount of money used to start a project, purchase an asset, or invest in a financial instrument, marking the beginning of the investment’s lifecycle.