1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
strojnjashka [21]
1 year ago
9

One year ago, James Sirlank bought Dell Computer common stock for $20 per share. Today the stock is selling for $19 per share. D

uring the year, James received four dividend payments, each in the amount of $0.20per share. (a) What rate of return did James earn during the year? (b) What were the (1) dividend yield and (2) the capital gains yield associated with the stock for the year?
Business
1 answer:
KIM [24]1 year ago
6 0

Tthe price of the share is down in the year so there will be no Capital gain (*5.26%) for the year but dividend of the the share received so there will be return (-1.05%) and dividend yield (4.21%) .

<h3>What will be the return and yield for the year ?</h3>

Given in the question

Price = $ 20

Selling Price = $ 19

Dividend payment = $ 0.20 per share

As per question

(a) Rate of Return =

Total return = (Purchase price - (Sale price + dividend     payment))/Purchase price \\                  = (20-(19+(0.2*4))/19\\                  = -1.05%

(b) (1) Dividend yield

Dividend Yield = Dividend payment / purchase \\                            0.2*4 / 19\\                         =   4.21%

(2)

Capital Gain yield

Capital gain Yield = (Sale price- purchase price)/Purchase price\\                               = (19-20)/20\\                           = *5.25%

Learn more about rate of return here

brainly.com/question/17205609

# SPJ 1

You might be interested in
When may an item attached to a structure be considered personal property rather than real property?
GaryK [48]

An item of personal property that has been converted to real property. Even though it is attached to a structure, an item may be considered personal property rather than real property if: A. the owner originally intended to remove it after a period of time.

Any movable thing or intangible object of value that is able to being owned through someone and now not identified as actual belongings. personal belongings may be characterized as either tangible or intangible. Examples of exact non-public assets consist of motors, furnishings, boats, and collectibles. stocks, bonds, and financial institution bills fall underneath intangible personal belongings.

Movable assets on land (large livestock, for example) become no longer automatically sold with the land, it become "non-public" to the owner and moved with the proprietor.

Learn more about personal property here brainly.com/question/5321219

#SPJ4

8 0
2 years ago
A store has 5 years remaining on its lease in a mall. Rent is $2,000 per month, 60 payments remain, and the next payment is due
liubo4ka [24]

Solution:

Sum      Present value of 60 payments

             Rent                                              2000

            Periods                                           60

            Rate                                                 12%

        Present value of 60 payments    $94,405 (Excel = PV( 1% , 60 , 2000))

       Future value of these payments at t=9

       Future value                                   $1,03,249.99(Excel=FV(1%,9,94,405)

       Periods                                              51

        Rate                                                 12%

8 0
3 years ago
The potential benefits a person or business gives up when making an
natulia [17]

The potential benefits a person or business supplies when getting an

economic decision is called the opportunity cost.

<h3>What is an opportunity benefit in economics?</h3>

Opportunity cost is the decision that one takes in order to get something. The benefit is the decision that a person gives in personal or professional life.

If the outcome of the decision is in favor than the opportunity cost is in benefit and if the decision has consequences than the opportunity cost is in loss.

Thus, option C is correct.

For more details about Opportunity cost, click here:

brainly.com/question/20446148

#SPJ1

4 0
3 years ago
Praxis Corp. is expected to generate a free cash flow (FCF) of $7,360.00 million this year (FCF₁ = $7,360.00 million), and the F
STatiana [176]

Answer:

$202,216.54 million

Explanation:

FCF₁ = $7,360 million

FCF₂ = $8,846.72 million

FCF₃ = $10,633.76 million

FCF₄ = $10,910.24 million and will continue to grow at 2.46%

we must first determine the terminal value at year 3:

terminal value = $10,910.24 million / (7.38% - 2.46%) = $221,752.85 million

firm's current total value = $7,360 million / 1.0738 + $8,846.72 million / 1.0738² + $10,633.76 million / 1.0738³ + $221,752.85 / 1.0738³ = $6,854.16 + $7,672.48 + $8,588.49 + $179,101.41 = $202,216.54

7 0
4 years ago
What is true about investment and risk
scZoUnD [109]
Investing money is always good when the stock market is good
5 0
3 years ago
Other questions:
  • You bought $15.25 worth of merchandise from a convenience store, but the final bill was $16.50. What is the sales tax rate? 6.3%
    6·1 answer
  • Which of the following is not an example of a nationwide effort to reform the tort system
    8·1 answer
  • Department C had direct materials EUP cost of $4.00 and conversion EUP cost of $2.50. If the department had 38,000 units complet
    10·1 answer
  • Which of the following is likely to be included in a​ country's GDP for a particular​ year? A. The total amount of flour used by
    15·1 answer
  • The "Loyal Agent Argument" states: An employer would want to be served in whatever ways will advance his or her self-interests.
    9·1 answer
  • The city council wants suggestions for crime prevention techniques such as installing unbreakable glass on storefronts to presen
    9·1 answer
  • A car dealer acquires a used car for $12,000, with terms FOB shipping point. Compute total inventory costs assigned to the used
    8·1 answer
  • A CEO wants to make the argument that his company should put policies and structures in place to ensure adherence to the highest
    8·1 answer
  • The Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly.
    14·1 answer
  • How publish Fiverr gig without taking a test?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!