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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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On April 1, 2016, the KB Toy Company purchased equipment to be used in its manufacturing process. The equipment cost $57,200, ha
Harman [31]

Answer:

2016 Depreciation

Dr depreciation expense $5720

Cr Accumulated depreciation               $5720

2017 Depreciation

Dr depreciation expense $5720

Cr Accumulated depreciation               $5720

Journal entries for 2018 expenditure

Dr repairs and maintenance   $2900

Dr Equipment account             $11850

Cr Cash account                                          $14750

2018 Depreciation

Dr depreciation expense          $4800.83

Cr Accumulated depreciation                     $4800.83

Explanation:

There are two policies for depreciating non-current asset  especially when it is acquired part-way through the year like we have here, namely full year depreciation in the year of purchase and none in the year of disposal or proportional depreciation throughout the useful life,I am adopting the former in this question.

Formula for depreciation=cost-residual value/useful life

Yearly depreciation is ($57200-$0)/10=$5720

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Answer:

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Explanation:

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Quantity demanded increase when price falls and falls when price increases.

Quantity supplied increases when price increases and falls when price falls.

The demand and supply curve are plotted with price on the y axis and quantity on the x axis.

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