A Firm Sells Two Products, a and

question 109

Multiple Choice

A firm sells two products, A and

• A) 31,000 of A and 31,000 of B
• B) 31,000 of A and 62,000 of B.
• C) 10,333 of A and 20,667 of B.
• D) 36,167 of A and 72,333 of B.
• E) 62,000 of A and 31,000 of B.

---

Definitions:

Shares Outstanding

The total number of shares of a corporation that have been issued and are currently owned by shareholders.

Cost of Equity

The return a firm theoretically pays to its equity investors to compensate for the risk they take by investing in the stock.

Annual Dividend

The total amount of dividend payments a shareholder receives from a company in one year.

Market Price

The present price at which a good or service is available for purchase or sale in the market.