Which of the following statements is true for a stock that sells now for $66.9, pays quarterly dividend of $1.20, and experienced a 25% return on investment over the past year? Its price one year ago was:
To find the stock's price one year ago, we can use the information provided.
We know that the stock sells now for $66.9 and has experienced a 25% return on investment over the past year.
To calculate the price one year ago, we need to take into account the return on investment.
Step 1: Calculate the return on investment in dollars.
Return on Investment = 25% * Current Price
Return on Investment = 0.25 * $66.9
Step 2: Subtract the return on investment from the current price to get the price one year ago.
Price One Year Ago = Current Price - Return on Investment
Price One Year Ago = $66.9 - (0.25 * $66.9)
By calculating this, we find that the price of the stock one year ago was $50.175.