Answer:
9.85%
Explanation:
Data provided in the question:
Initial Offer price = $23.45
Current NAV = $22.28
Dividends and capital gains distributions over the year = $1.09 per share
Now,
Holding period return
= [Current NAV + Dividends and capital gains distributions - Initial Offer price ] ÷ Initial Offer price
= [ $24.67 + $1.09 - $23.45 ] ÷ $23.45
= $2.31 ÷ $23.45
= 0.0985
or
= 0.0985 × 100%
= 9.85%
Answer:
Inflation in 2012:
= 10%
Inflation in 2013:
= 9.09%
Inflation in 2014:
= 5%
Real rate of interest = Nominal - inflation
Given that,
Nominal rate = 8%
Therefore,
Real interest rate is as follows:
2012:
= 8% - 10%
= -2%
2013:
= 8% - 9.09%
= -1.09%
2014:
= 8% - 5%
= 3%
$6000 at 8% grows to:
= 1000 × 1.08
= $6,480 in one year
which is invested again to grow to $6,998.4 in two years
which is invested again to grow to $7,558.272 in three years
so,
Total gain:
= 25.9712%
The price level increases in three years by:
= 26%
So,
Total real rate of return:
= Total gain - Percentage increase in prices
= 25.9712 - 26
= -0.0288%
Answer:
It is more profitable to raise the selling price by $2.
Explanation:
To determine whether the company should raise the selling price, we need to determine the effect on income. <u>The best option is the one with the higher sales revenue.</u>
Sales revenue= selling price * number of units
<u>Current:</u>
Sales revenue= 5.5*2,200= $12,100
<u>Proposal:</u>
Sales revenue= 7.5*1,800= $13,500
It is more profitable to raise the selling price by $2.
Answer and Explanation:
The computation of the asset turnover for all three companies is as follows:
<u>Particulars YRC UNP CH
</u>
Sales 4697500 19941000 13144413
Divided by
Average
total assets 1824700 55159000 3436058
Assets turnover 2.6 0.4 3.8
Answer:
Inheritance
Explanation:
The above question highlights example of inheritance. Whenever the ownership of business is transferred from one generation to another, it can be taken as an example of inheritance in a capitalist system.
The same has happened in the above question as well. Chet Bowes who owned his own lanscapped business has now transferred the ownership to his son Josh who has recently taken charge, now it is very much clear from the question neither Josh built the company on his own now was hired on the basis of his capabilities, the transfer happened on the basis of his relationship with the owner of the company. The question shows an example of inheritance.
