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Grace [21]
2 years ago
9

Travis bought a share of stock for $31.50, the stock paid a dividend of $0.85, and Travis sold it six months later for $27.65. W

hat were his dollar profit or loss and his holding period return?
Business
1 answer:
Luden [163]2 years ago
5 0

Answer:

Dollar profit loss = $3

Holding period return = negative 9%

Explanation:

In order to find the dollar profit or loss return we will add the dividend and selling price because that the dividend plus the selling price is the cash that Travis receives or the positive cash and we will subtract the buying price from it because it is the negative cash flow. So we will add all the positive cash flows and subtract negative cash flow from it in order to find the dollar profit loss or return.

Selling price = 27.65

Dividend = 0.85

Selling price + Dividend= 28.5

Selling price = 31.50

Dollar profit loss or return = 28.50-31.5=-3

Loss= $3

In order to find the holding period return we will divide add the dividend and selling price , subtract buying price from it and then divide it by buying price.

(27.65+0.85-31.5)/31.5= -0.09 = -9%

Holding period return = negative 9%

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A savings account is useful for all of the following purposes EXCEPT…
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Answer:

The correct answer is letter "A": Putting aside money for retirement.

Explanation:

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8 0
3 years ago
Read 2 more answers
Route Canal Shipping Company has the following schedule for aging of accounts receivable:Age of Receivables April 30, 20X1 (1) (
m_a_m_a [10]

Answer:

Explanation:

The formula to compute the percentage of amount due for each month is shown below:

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For April:

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For March:

= ($78,120) ÷ ($390,600) × 100

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For February:

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5 0
3 years ago
Adirondack Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead ra
Tatiana [17]

Answer:

The factory overhead allocated per unit of Product A in the Painting Department = 7 *  15.623= $ 109.37

Plantwide Overhead Rate=  $328,100  /21000= 15.623

Explanation:

                   Overhead Total Direct Labor Hours DLH per Product A B

Painting Dept. $245,600           9,50                                    7       7

Finishing Dept.  82,500              1 1,500                               3         4

Totals                $328,100           21,000                             10           11

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Plantwide Overhead Rate=  $328,100  /21000= 15.623

The factory overhead allocated per unit of Product A in the Painting Department = 7 *  15.623= $ 109.37

3 0
3 years ago
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