Answer:
Expected rate of return on stock is 14.86%
Explanation:
The expected rate of return of a stock is the mean return that is expected to be earned by the stock considering the different scenarios that can occur, the return in these scenarios and the probability of the occurrence of these scenarios. The formula for expected rate of return of stock is,
rE = pA * rA + pB * rB + ... + pN * rN
Where,
- pA, pB, ... represents the probability that scenario A, B and so on will occur or the probability of each scenario
- rA, rB, ... represents the return in scenario A, B and so on
rE = 0.21 * 0.2 + 0.72 * 0.15 + 0.07 * -0.02
rE = 0.1486 or 14.86%
Answer
Financial advantage from further processing $31
Explanation:
<em>A company should process further a product if the additional revenue from the split-off point is greater than than the further processing cost. </em>
<em>Also note that all cost incurred up to the split-off point (the cost of crushing) are irrelevant to the decision to process further . </em>
<em> $</em>
Sales revenue after the split off point( 64+64) 128
Sales revenue at the split-off point (16+47) <u> 63</u>
Additional sales revenue 65
Further processing cost ( 15+19) <u>(34
)</u>
<em>Net income after further processing 31</em>
Financial advantage from further processing $31
Answer:
The answer is $47.6
Explanation:
Solution
Given that
You bought = 140 shares of Mitchum Trading for $50.07 per share
The quarterly dividend = $.17
The current price = $51.03
So we find the total dividend income you received which is computed below:
The total dividend received = (0.17 * 2) * 140
=(0.34) * 140
= $47.6
Therefore the total dividend of income that you received is $47.6
Answer:
b. Less than the effective interest rate
Explanation:
The stated discount rate on this loan is Less than the effective interest rate
As the note is noninterest-bearing note, the stated discount rate on this loan is less than the effective interest rate.
