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Tresset [83]
3 years ago
14

Suppose you bought 400 shares of stock at an initial price of $53 per share. The stock paid a dividend of $0.58 per share during

the following year, and the share price at the end of the year was $54.
a. What is the capital gains yield? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
b. What is the dividend yield? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) c. What is the total rate of return on the investment? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Business
1 answer:
Gekata [30.6K]3 years ago
7 0

Answer:

Explanation:

Capital gains yield is the return investors get if their stocks appreciate in value. In this case , the price increases from $53 to $54

Capital gains yield(CGY) formula = (New price - Old price)/ Old price

CGY = (54-53)/53

= 0.01887 or 1.89%

Dividend yield measure the return from dividend payment on the stock.

It is calculated as follows;

Dividend yield = Dividend / Price

= 0.58/ 53

=0.01094 or 1.09%

Total rate of return = capital gains yield + dividend yield

total return = 0.01887 + 0.01094

= 0.0298 or 2.98%

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In this stage, the outcome will result only in a yes or no and if it comes to yea then the salesperson will further evaluate whether the prospect can be a successful long term customer.

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3 years ago
The balance in the supplies account before adjustment at the end of the year is $873. The proper adjusting entry if the amount o
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Answer:

Explanation:

The proper adjusting entry is as follows

Supplies expense A/c Dr $603

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3 years ago
Bo's Home Manufacturing has 410,000 shares outstanding that sell for $46.86 per share. The company has announced that it will re
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Answer:

The correct answer is $46.86.

Explanation:

According to the scenario, the computation of the given data area as follows:

Shares outstanding = 410,000

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So, total value of outstanding shares = 410,000 × $46.86 = $19,212,600

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So, Number of shares repurchased = $61,000 ÷ $46.86 = 1301.7 shares

So, outstanding shares = 410,000 - 1301.7 = 408,698.3 shares

So, Share price after repurchase = ($19,212,600 - $61,000) ÷ 408,698.3 shares

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Answer:

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