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Anit [1.1K]
3 years ago
14

Alexis bought a stock for $34 a share two years ago. The stock does not pay any dividends. Today she sold the stock for $28.50 a

share. What was her internal rate of return on this investment?
Business
1 answer:
JulijaS [17]3 years ago
3 0

Answer:

internal rate of return -16.17%

Explanation:

The internal rate of return is negative because the investment didn't receive dividends for two years. It means that the stock lost value. How much? 16.17% of its value in two years.

<h2>34 * (1 - 16,17%) = 28.5 </h2>

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Windsor Corporation has the following balances at December 31, 2017.Projected benefit obligation $2,561,000Plan assets at fair v
Vilka [71]

Answer:

$584,000

Explanation:

Calculation for the amount of pension liability that should be reported

Projected benefit obligation $2,561,000

Less Plan assets at fair value 1,977,000

Pension liability $584,000

Therefore the Pension liability balance at December 31, 2017 will be $584,000

7 0
3 years ago
Railway Cabooses just paid its annual dividend of $3.30 per share. The company has been reducing the dividends by 12.1 percent e
kupik [55]

Answer:

If the required rate of return is 14 percent, the price I am willing to pay is 11.113

Explanation:

To calculate what you are willing to pay today to purchase stock in this company if your required rate of return is 14 percent, you have to use the following formula.

Po = D1 / (k-g)

Po = purchase price

D1 = Dividend in paid in next year

k = required rate of return

g= growth rate

Po = (3.30 (1-0.121)) / (0.14-(-0.121))

Po = 2.9007/ 0.261

Po= 11.113.

5 0
4 years ago
Which statement about subsidiary ledger is most accurate
s344n2d4d5 [400]
The accounts receivable subsidiary ledger is a book of accounts that provides supporting detail for Accounts Receivable.
4 0
4 years ago
Read 2 more answers
Quantitative Problem 1: Assume today is December 31, 2017. Barrington Industries expects that its 2018 after-tax operating incom
ziro4ka [17]

Answer:

$29.630

Explanation:

For computation of stock price first we need to follow some steps which is shown below:-

Free cash flow = EBIT (1 - T) + Depreciation - Capital expenditure - Working capital

= $450 million + $65 million - $110 million - $30 million

=  $375 million

Value of firm = Free cash flow ÷ (WACC - Growth)

= $375 million ÷ (9% - 4.5%)

= $375 million ÷ 0.045

= $8,333.33 million

Value of equity = Value of firm - Value of debt

= $8,333.33 million - $3,000 million

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Stock price = Value of equity ÷ Outstanding shares

= $5,333.33 million ÷ 180 million

= $29.630

3 0
4 years ago
The data processing cycle consists of four steps. Draw all the steps.
Lyrx [107]

Answer:

Explanation:

The four steps in the data processing cycle are the following input, processing, output and storage. The information is first entered into system where it is then processed by the system. Once the information is processed and understood by the system it is then saved in a database. From the database it is then grabbed by the system and sent as an output to where it is needed. This is all illustrated in the drawing attached below.

7 0
3 years ago
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