The Finance Club at a local university makes short-term investments in stock to study trends in various sectors of the stock market. On October 1, 2014, they purchased 100 shares of LeTableaux stock for $6,150. After eight months, the stock shares had increased in value by $135.00 and had paid dividends (part of a company's profit paid to stockholders) totaling $142.68. The Club decides to sell the stock at this point and evaluate their investment. Compare their gain to a bank savings plan paying simple annual interest (for 8 months) to determine the interest rate that this gain represents.

The Finance Club at a local university makes short-term investments in stock to study trends in various sectors of the stock market. On October 1, 2014, they purchased 100 shares of LeTableaux stock for $6,150. After eight months, the stock shares had increased in value by $135.00 and had paid dividends (part of a company's profit paid to stockholders) totaling $142.68. The Club decides to sell the stock at this point and evaluate their investment. Compare their gain to a bank savings plan paying simple annual interest (for 8 months) to determine the interest rate that this gain represents.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter1: Role Of Accounting In Society

Section: Chapter Questions

Problem 15Q: According to a company press release, on January 5, 2012, Hansen Natural Corporation changed its...

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