Answer:
Holding Period return is 6.25%
Explanation:
The return received on the asset in the period in which it is held is called holding period return. It included the interest / dividend received and change in the initial price and current price.
According to given data
Initial Price of stock = $48
Expected Value in coming year = $46
Expected Dividend = $5
Formula for Holding Period Return
HPR = [ Income + [ ( Expected value - Initial Value ) ] / initial value
HPR = [ Expected Dividend + [ ( Expected value - Initial Value ) ] / initial value
HPR = [ $5 + ( $46 - $48 ) ] / $48
HPR = [ $5 - $2 ] / $48
HPR = $3 / $48
HPR = 0.0625 = 6.25%
Based on the amount of revenues and expenses as well as assets, the return on assets is <u>7.1%. </u>
To find the ROA you need to find the average assets and the net income.
<h3>What was the net income ?</h3>
This was:
= Revenues - Expenses
= 80,175 - 50,000
= $30,175
<h3>What were the Average Assets?</h3>
= (Beginning assets + Ending assets) / 2
= (400,000 + 450,000) / 2
= $425,000
<h3>What was the Average Return on Assets?</h3>
= Net income / Average assets
= 30,175 / 425,000
= 7.1%
In conclusion, it was 7.1%.
Find out more on the return on assets at brainly.com/question/26415601.
<span>The total cost is $180,000. The explicit cost is $50,000 ($25,000 for 2 years). The opportunity cost is $130,000 ($65,000 for 2 years).</span>
the answer is c because the bottom line systems inc.
Answer:
D) $3,000
Explanation:
Calculation to calculate determine Sybil's tax basis in the stock received in the exchange
Tax basis $5,000
Add recognized gain $1,000
($6,000-$5,000)
Less boot received ($2,000)
Less liability ($1,000)
Sybil's tax basis $3,000
Therefore Sybil's tax basis in the stock received in the exchange will be $3,000