Greg purchased stock in Cockatoo Limited at a price of $89 per share one year ago. The company was acquired by Wombat Investments at a price of $10 per share. What is Greg's return on his investment?

Question

Quizplus · Accepted Answer

Greg's return on investment can be calculated using the formula: ((Sale Price - Purchase Price)/Purchase Price) x 100%

Here, Greg's purchase price is $89 and sale price is $10 after the acquisition.
Hence, his return is ((10-89)/89) x 100%
= (-79/89) x 100%
= -88.76%

Therefore, the correct answer is C.

Greg Purchased Stock in Cockatoo Limited at a Price of $89