In January 2009, suppose that a share of stock in Meyer, Inc. was worth $50 and that each share entitled its owner to $2 of Meyer, Inc.'s profit. During 2009, the price of a share of Meyer's stock increased to $100. The interest rate paid on the share percent.
A) 4
B) 0.02
C) 2
D) 25

Question

Quizplus · Accepted Answer

The interest rate paid on the share is calculated as the profit per share divided by the initial price per share. So, $2/$50 = 0.04 or 4%.

In January 2009, Suppose That a Share of Stock in Meyer