Ralph Bought a Share of Stock for $31

question 97

Multiple Choice

Ralph bought a share of stock for $31.50 that paid a dividend of $.85 and sold six months later for $27.65.What was his dollar profit or loss and holding period return?

• A)-$3.00,-9.52%
• B)-$3.85,-12.22%
• C)-$.85,-2.70%
• D)-$3.85,-9.52%

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Definitions:

Inventory Period

The time it takes for a company to turn its inventory into sales, often measured in days or weeks.

Cash Cycle

The period between the acquisition of inventory by a business and the collection of accounts receivable generated by the sale of that inventory.

Inventory Turnover

Inventory turnover is a ratio showing how many times a company's inventory is sold and replaced over a particular period, indicating the efficiency of inventory management.

Accounts Payable

Accounts payable is an accounting term for the outstanding bills or debts a company owes to suppliers or vendors for goods or services received.