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eimsori [14]
3 years ago
5

A stock that sold for ​$ per share at the beginning of the year was selling for ​$ at the end of the year. If the stock paid a d

ividend of ​$ per​ share, what is the simple interest rate on the investment in this​ stock? Consider the interest to be the increase in value plus the dividend.
Business
1 answer:
Anestetic [448]3 years ago
7 0

Answer:

137.77%

Explanation:

obviously the numbers are missing, so I looked for a similar question:

"A stock that sold for ​$26 per share at the beginning of the year was selling for ​$52 at the end of the year. If the stock paid a dividend of ​$9.82 per​ share, what is the simple interest rate on the investment in this​ stock? Consider the interest to be the increase in value plus the dividend."

  • total interest received (your gain) = (year end market value - purchase price) + dividends received = ($52 - $26) + $9.82 = $35.82
  • initial investment (purchase price) = $26

simple interest rate of return on investment = total interest received / initial investment = $35.82 / $26 = 1.3777 or 137.77%

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Current output Y = AK^(alfal)L^(1- alfa)

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2 years ago
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Minchanka [31]

Answer:

(a) P(X\:>\:5.40)=0.9938

(b) P(X\:

(c) X=4.975 percent

Explanation:

(a) Find the z-value that corresponds to 5.40 percent

.Z=\frac{X-\mu}{\sigma}

Z=\frac{5.40-4.15}{0.5}

Z=\frac{1.25}{0.5}=2.5

Hence the net interest margin of 5.40 percent is 2.5 standard deviation above the mean.

The area to the left of 2.5 from the standard normal distribution table is 0.9938.The probability that a randomly selected U.S. bank will have a net interest margin that exceeds 5.40 percent is 1-0.9938=0.0062

(b) The z-value that corresponds to 4.40 percent is Z=\frac{4.40-4.15}{0.5}=0.5The net interest margin of 4.40 percent is 0.5 standard deviation above the mean.

Using the normal distribution table, the area under the curve to the left of 0.5 is 0.6915

Therefore the probability that a randomly selected U.S. bank will have a net interest margin less than 4.40 percent is 0.6915

(c)  The z-value that corresponds to 95% which is 1.65

We substitute the 1.65 into the formula and solve for X.1.65=\frac{X-4.15}{0.5}

1.65\times 0.5=X-4.150.825=X-4.15

0.825+4.15=X

4.975=X

A bank that wants its net interest margin to be less than the net interest margins of 95 percent of all U.S. banks should set its net interest margin to 4.975 percent.

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