Calculate the stock's total return if the company announces that they had an industrial accident and the operating facilities will close down for some time thus resulting in a loss by the company of 7% in return.
A)-4.05%
B)-2.05%
C)4.55%
D)0.40%
E)1.85%

Question

Quizplus · Accepted Answer

To calculate the total return, we need to subtract the loss percentage (7%) from the return. 
So, the total return will be:
100% - 7% = 93%
Therefore, the stock's total return will be a decrease of 2.05% (100% - 93%). Option B is the correct answer.

Calculate the Stock's Total Return If the Company Announces That