Use the Following to Answer Questions

question 198

Multiple Choice

Use the following to answer questions:
Figure: Tax on Sellers
-(Figure: Tax on Sellers) The size of the tax in the diagram is:

• A) $3.
• B) $4.
• C) $7.
• D) $6.

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Definitions:

Dividend

A portion of a company's earnings distributed to its shareholders, typically in the form of cash or additional stock.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock and typically dividends that are paid out before those to common stockholders.

Annual Dividend

The total amount of dividend payments a company makes to its shareholders over a single fiscal year.

Return

The income generated on an investment over a particular period of time, expressed as a percentage of the investment's initial cost.