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:

Cost Of Labor

The total amount of financial compensation and benefits paid to employees for their work, including wages, salaries, and benefits.

Isocost Line

An isocost line represents all combinations of inputs (like labor and capital) that cost the same amount for a firm, illustrating budget constraints in production.

Total Cost

A combination of constant and fluctuating expenses that a company endures in the process of producing goods or services.

Isoquant

A curve that shows all combinations of inputs that produce the same level of output, used in production theory to analyze optimal input combinations.