Donna Warne Purchased a Share of Company X at $700

question 106

Multiple Choice

Donna Warne purchased a share of company X at $700 one year ago. The share is now trading at $850. Calculate the percent capital gain if Donna sells her share at the current price.

• A) 17.6%
• B) 150%
• C) 6.7%
• D) 21.4%

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Definitions:

Competitive Industry

An industry characterized by a large number of firms competing with each other to provide goods or services to consumers.

Market Demand

The total quantity of a product or service that consumers are willing and able to purchase at various prices during a specified time period.

Market Equilibrium

A state in a market where the quantity demanded by consumers equals the quantity supplied by producers, leading to a stable price.

Competitive Industry

A sector of the marketplace characterized by numerous firms vying for market share, leading to benefits for consumers through innovation and lower prices.