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

Question

Quizplus · Accepted Answer

The interest rate is calculated as the profit per share ($2) divided by the initial price per share ($50), which equals 0.04 or 4%.

In January, Suppose That a Share of Stock in Meyer