The nominal annual rate of return is 20%
Given,
Annual dividend = $2.50(4) = $10. rps
= Dps/Vps = $10/$50 = 0.20 = 20%
The nominal rate of go back is the quantity of cash generated by way of an investment before factoring in charges such as taxes, funding charges, and inflation. If an funding generated a ten% go back, the nominal rate would equal 10%.
Nominal interest price refers back to the hobby price earlier than taking inflation into consideration. Nominal also can seek advice from the advertised or said interest rate on a loan, without contemplating any fees or compounding of interest.
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Answer:
stock price
earning per share
dividends per share
Explanation:
A stock split is when a company increases the number of its shares outstanding.
for example if a company has 4 million shares outstanding at a price of $20, earning per share is $1 and dividend per share is $0.50. this company announces a 2 for 1 split :
the number of outstanding shares becomes 2 x 4 million = 8 million
stock price becomes = $40 / 2 =$20
earning per share = $1 / 2 = $0.50
dividend per share = $0.5 / 2 = $0.25
Answer:
YTC = 8.3%
Explanation:
you should calculate the yield to call (YTC)
YTC = {coupon + [(call value - market value)/n]} / [(call value + market value)/2]
but we first need to calculate the market value:
PV of face value = $1,000 / (1 + 6.5%)¹⁰ = $532.73
PV of coupons = $60 x 7.18883 (PV annuity factor, 6.5%, 10 periods) = $431.33
market price = $532.73 + $431.33 = $964.06
YTC = {60 + [(1,060 - 964.06)/4]} / [(1,060 + 964.06)/2] = 83.985 / 1,012.03 = 8.3%
Answer:
a. $1,375
b. $1,240
Explanation:
FIFO method
FIFO assumes that the inventory to arrive first will be sold first. Inventory values depend on earlier purchases
Inventory = 185 x $5 + 75 x $6
= $1,375
LIFO method
LIFO assumes that the inventory to arrive last will be sold first. Inventory values depend on recent purchases
Inventory = 130 x $7 + 55 x $6
= $1,240
