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antoniya [11.8K]
2 years ago
9

One year ago, Richard purchased 40 shares of common stock for $10 per share. During the year, he received one dividend payment i

n the amount of $0.50 per share. If the stock currently is worth $9 per share, what yield did Richard earn on his investment for the year
Business
1 answer:
galben [10]2 years ago
5 0

The yield on investment in such shares by Richard for the given condition will be a negative of 5%.

<h3>What is investment yield?</h3>

The total amount of returns generated over an investment during a given financial period is known as the investment yield for such period. It will be computed using the formula and given information as,

\rm Investment\ Yield= \dfrac{Closing\ Price- Beginning\ Price\ + Dividend}{Beginning Price}\ x\ 100\\\rm Investment\ Yield= \dfrac{9-10+0.5}{10}\ \rm x\ 100\\\\\rm Investment\ Yield= -5\%

Hence, the investment yield for Richard is as aforementioned.

Learn more about investment yield here:

brainly.com/question/15602637

#SPJ1

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Impact of lockdown on business​
Zina [86]

Explanation:

Impact on lockdown on business It has been very tough time for buisness  as far as we know buisness hasnt last long enough and there has been very huge losses.

3 0
3 years ago
Margarite's Enterprises is considering a new project that will require $345,000 for new fixed assets, $160,000 for inventory, an
atroni [7]

Answer:

NPV = (53,222.44)

Explanation:

Net fixed asset                              345,000

Working capital

160,000 inventory + 35,000 Ar =   195,000

short term deb                                 (110,000)

net working capital                           85,000

Total investment                            430,000

salvage value 345,00 x 25% = 86,250

release of the working capital  85,000

Cash flow at end of project      171,250

annual cash flow

sales             550,000

cost              (430,000)

depreciation    69,000

EBT                   51,000

tax expense 35%

                        (17,850)

net income       33,150

+ dep                 69,000

cash flow           102,150

Now we calculate the present value of the net cash flow and the present alue fothe end of the project

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 102150

time 4

rate 0.15

102150 \times \frac{1-(1+0.15)^{-4} }{0.15} = PV\\

PV $291,636.04

\frac{Principal}{(1 + rate)^{time} } = PV  

Principla (sum of salvage and released Working capital   171,250.00

time   5.00

rate   0.15

\frac{171250}{(1 + 0.15)^{5} } = PV  

PV   85,141.52

NPV = 291,636.04 + 85,141.52 - 430,000 = (53,222.44)

6 0
4 years ago
Sweet Company’s outstanding stock consists of 1,000 shares of noncumulative 5% preferred stock with a $100 par value and 10,000
frutty [35]

Answer:

preferred stockholders received $15,000 during the first 3 years

  • $2,000 in the first year
  • $6,000 in the second year
  • $7,000 in the third year

common shareholders received $25,000 in dividends during the third year.

Explanation:

preferred stock = 1,000 shares x $100 par value x 5% = $5,000

common stock = 10,000 shares at $10 par value

dividends declared and paid during the first 3 years:

year       dividends

1               $2,000

2              $6,000

3            $32,000

preferred stockholders should have received $5,000 per year x 3 years = $15,000. Preferred stockholders must be paid first, and their payment is fixed. If the dividends are not enough to pay the total amount, the remaining amount should be paid next year.

  • $2,000 in the first year
  • $6,000 in the second year
  • $7,000 in the third year

common shareholders received $32,000 - $7,000 = $25,000 in dividends during the third year.

7 0
4 years ago
For a differentiation strategy to strengthen a company's strategic position and boost its competitive advantage, ______.
Tanya [424]

For a differentiation strategy to maintain a company's strategic situation and increase its competitive advantage an increase in value creation much surpass the increase in costs.

<h3>How does a differentiation strategy benefit in gaining a competitive advantage?</h3>

Differentiation gives a party two advantages:

-It can allow the firm to charge a premium price for its good or service, should it choose to do so.

-It can help the firm to grow overall need and capture market share from its rival.

A generic strategy attempts to convince clients to pay a premium price for its good or services by supplying unique and desirable features. Using a differentiation strategy suggests that a firm is contesting based on uniqueness, rather than price.

To learn more about differentiation strategy visit the link

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4 0
2 years ago
Sienna Inc., a software firm, decided to hire a technical expert. The company conducted an aptitude test followed by structured
joja [24]

Answer:

Refer David to another company.

Explanation:

In the given case, promoting other minority employees is not the correct action because the victim is David. Hiring other African Americans make up for David's loss is not the correct answer either because of the same reason. Paying David's legal costs is not an effort towards compensating for the discrimination. The company is likely required to give David a referral to another company which is the only action that affects David directly in terms of compensation. I hope this was helpful.

4 0
3 years ago
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