How would this sale of stock in affect ibm corporation

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Reference no: EM132017972

1. Joe E. Conomist purchased 100 shares of IBM corporation in 2011 for $10,000. In 2014, Joe soldthese shares to Sally Forth for $15,000. How would this sale of stock in 2014 affect IBM corporation?

- IBM makes $5,000 in profit

- IBM invests $5,000 in capital equipment

- IBM suffers a loss of $5,000

- IBM is unaffected

2. A stock's price is $20 at the beginning of a year. There is a 25 percent chance that theprice will be $17 at the end of the year, and a 75 percent chance that the price will be$25 at the end of the year. The stock will pay a dividend of $3 during the year. Theexpected return on the stock is ________percent

- 10

- 20

- 30

-40

Reference no: EM132017972

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