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adoni [48]
3 years ago
7

An investment earns 35% the first year, earns 40% the second year, and loses 37% the third year. The total compound return over

the 3 years was ______. Multiple Choice 158.93% 19.07% 38.00% 6.36%
Business
1 answer:
svetoff [14.1K]3 years ago
7 0

Answer:

19.07%

Explanation:

The computation of the total compound return over the 3 years is shown below:

= (1 + investment percentage earned in first year) × (1 +  investment percentage earned in second year)  × (1 +  investment percentage loss in second year)

= (1 + 0.35) × (1 + 0.40) × (1 - 0.37)

= 1.35 × 1.40 × 0.63

= 1.1907

= 19.07%

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A stock sells for $40. The next dividend will be $4 per share. If the rate of return earned on reinvested funds is a constant 15
AlladinOne [14]

Answer:

r= 16%

Explanation:

The Common Stock Valuation method is also simply referred to as the Value of the Stock Method and it is calculated taking different items such as growth rate of dividend, the dividend itself and number of periods into consideration

FIrst, we identify the formula of rate of return where dividend inceases constantly and at a compound rate

P0 = Div1/ r-g

Where Po is the price of the stock, Div1 is the next year's dividend, r is the rate of return and g is the growth rate of teh dividend

Secondly, we look at the growth rate with thereinvestment of 40% stock and a rate of return on reinvestmetn of 15% according to the question

Growth rate = r x e, where r is the rate of return and e is the reinvestment earning

Growth rate = 0.15 x 0.40 = 0.6

Finally, we calculate The rate of return or the discount rate using the first formula

P0 = Div1/ r-g

$40 = $4/r-0.06

r = ($4/$40) + 0.06

r= 16% or 0.16

5 0
3 years ago
Which lists the Business, Management, and Administration careers in order from highest level of education typically required to
olga_2 [115]
The correct answer is C. Let's clarify this. An intern position doesn't amount to a professional rank, since the intern doesn't hold a permanent position. The intern is therefore the last in the scale. The data entry clerk is a professional who handles low responsibility tasks and works under someone else's supervision. The accountant is the hierarchical of the data entry clerk. Then at the top of the pyramid you have the operations research assistant who has more responsibility than the accountant, hence more than everyone else down the scale.
7 0
3 years ago
Read 2 more answers
When information is transferred from one person to another is called
9966 [12]

Answer:

Below:

Explanation:

It's called "Communication".

Hope it helps.....  Bro/Sis

It's Muska...   :)

5 0
3 years ago
Read 2 more answers
In deciding whether to dismiss the suit, the court in California first should look to _________ sources of law, or sources that
timama [110]

Answer:

Primary

Explanation:

The primary sources of law should be looked to when deciding whether to dismiss a suit or not. The primary sources of law are the determining bodies usually the government (federal and/or state) that make the laws. These bodies include the legislative, case laws, treaties, regulations and constitutions.

I hope this helps.  

8 0
3 years ago
Avery Corporation's target capital structure is 35% debt, 10% preferred, and 55% common equity. The interest rate on new debt is
Andreyy89

Answer:

8.15%

Explanation:

The computation of the weighted average cost of capital as follows;

= After Cost of debt × weightage of debt + cost of preferred stock × weight of preferred stock + cost of common equity × weight of equity

= 6.50% × (1 - 0.40) × 35 ÷ 100 + 6% × 10 ÷ 100 + 11.25% × 55 ÷ 100

= 1.37% + 0.60% + 6.19%

= 8.15%

8 0
3 years ago
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