Intel Stock Declined in Value from $34 to $30 and Paid

question 21

Multiple Choice

Intel stock declined in value from $34 to $30 and paid a dividend of $1 per share. What is the rate of return on Intel stock?

• A) -13.33%
• B) -8.82%
• C) 16.66%
• D) -10%

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Definitions:

Market Power

The ability of a firm to control the price and output of products in its market, often due to limited competition.

Government-Set Barriers

Regulations and policies established by governments to control the entry of firms into certain markets or to protect domestic industries from foreign competition.

Economies of Scale

The cost advantage experienced by a firm when it increases its level of output. The average costs per unit of output decrease with the scaling up of production.

Diamond-Mining Company

An entity engaged in the extraction of diamonds from the earth through mining operations.