A share of Apple stock costs $82.58 and gives $5.36 of Apple profit to its owner. The interest rate on this share

Question

Quizplus · Accepted Answer

To find the interest rate, we need to divide the annual profit by the cost of the share and then convert the result to a percentage:

Interest rate = (annual profit / share cost) x 100%
Interest rate = (5.36 / 82.58) x 100%
Interest rate ≈ 0.0648 x 100%
Interest rate ≈ 6.48%

Therefore, the best choice is C: 6.4 percent (rounded to one decimal place).

A Share of Apple Stock Costs $82