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kifflom [539]
3 years ago
9

Last year mike bought 100 shares of dallas corporation common stock for $53 per share. during the year he received dividends of

$1.45 per share. the stock is currently selling for $60 per share. what rate of return did mike earn over the year?
a.11.7 percent
b.13.2 percent
c.14.1 percent
d.15.9 percent
Business
1 answer:
Pepsi [2]3 years ago
4 0
Mike brought 100 shares costing $53 each.
Total costs of shares= 100*53
=$5300

He got dividends of $1.45 per share. A dividend is money that is earnt back from a share.
Total dividend amount = 1.45*100
=$145

I'm assuming that Mike sold his shares at the end of the year. He sells for $60 each.
Total sales amount=60*100
=$6000

The rate of return in this instance can be defined as the amount of money made back from a share.

Rate of return= total earnings/ costs

Total costs= $5300
Total earnings=$6145

6145/5300=1.1594
=15.9%

Hope this helps! :)
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Answer:

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Explanation:

Invisible hand (effective allocation of resources in a laissez faire economy) sometimes works because when market function effectively and send correct price as signal of values (to society) to producers.

However, when goods can't be traded on markets (public goods) or its values are not correctly reflected on markets (externalities, information asymmetries) or competition is not ensured (monopoly), markets cannot ensure effective allocation of resources.

5 0
3 years ago
Prepare journal entries to record the following transactions for the village of Radnor. Classify the expenditures as Parks suppl
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Answer:

A. Dr Encumbrances $14,000

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C. Dr Budgetary fund balancereserved for encumbrance $6,000

Cr Encumbrances $6,000

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Explanation:

Preparation of Journal entries

A. Dr Encumbrances $14,000

Cr Budgetary fund balance $14,000

($8,000+$6,000)

B. Dr Budgetary fund balance $8,000

Cr Reserved for encumbrances Encumbrances $8,000

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C. Dr Budgetary fund balancereserved for encumbrance $6,000

Cr Encumbrances $6,000

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3 0
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3 years ago
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0                              0                       $18

1                               0                       $20.88

2                              0                       $24.22

3                              0                       $28.10

4                              0                       $32.59

5                              0                       $37.81

6                              $12.59              $41.97

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ROE growth rate starting year 6 = 11%

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Answer:

Check the explanation

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b) Solution with the help of Excel solver:

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The attached images below are the formulation.

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