Answer: 7.35%
Explanation:
Based on the information given, the market rate of return on this stock will be calculated as:
= (D1/P0) +G
where,
D1= Dividend at year 1 = 2.20
P = price at present =43.19
G = dividend growth rate =2.25%
We then slot the figures into the formula and we will get:
= (D1/P0) +G
= (2.20 / 43.19) + 2.25%
= 0.051 + 2.25%
= 5.1% + 2.25%
= 7.35%
Therefore, the market rate of return will be 7.35%.
Answer:
920 (Unfavorable)
Explanation:
Labor rate variance = Actual direct labor hours (Actual direct labor rate - Standard direct labor rate)
Labor rate variance = 2,300 * ($21.7 - $21.3)
Labor rate variance = 2,300 * 0.4
Labor rate variance = 920 (Unfavorable)
Answer:
$46,000
Explanation:
We can find out the the revaluation gain that need to be reported at the year end by just deducting the the cost of the investment by its current fair value .
DATA
Fair value = 588,000
Cost = 542,000
Revaluation gain = Current fair value - Cost
Revaluation gain = 588,000 - 542,000
Revaluation gain = $46,000
The revaluation gain of $46,000 will be reported in other compreensive income of smith's financial statements.
Answer:
Yes, she is required to include her tips in gross income.
Explanation:
Yes, Carey is required to include her tips in gross income. She is required to include both her small hourly amount and her tips, declaring both as a total sum amount. Even though the customer has no obligation to pay any tip of any kind to Carey, any tip she receives will count as compensation for services, as the tips are payments for her service to the customer.
Answer:
SD = 0.0740270 or 7.40270 percent rounded off to 7.403 percent
Explanation:
To calculate the standard deviation of the investment, we must first calculate the expected or mean return of the investment. The expected or mean return can be calculated as follows,
r = pA * rA + pB * rB + ... + pN * rN
Where,
- pA, pB, ... represents the probability of state occurrence
- rA, rB, ... represents return A, return B and so on under each state
r = 0.2 * 0.16 + 0.4 * 0.12 + 0.2 * 0.05 + 0.2 * -0.05
r = 0.08 or 8%
The formula to calculate the standard deviation of a stock/investment is as follows,
SD = √pA * (rA - r)² + pB * (rB - r)² + ... + pN * (rN - r)²
SD = √0.2 * (0.16 - 0.08)² + 0.4 * (0.12 - 0.08)² + 0.2 * (0.05 - 0.08)² + 0.2 * (-0.05 - 0.08)²
SD = 0.0740270 or 7.40270 percent rounded off to 7.403 percent
