Answer:
a.38%
b. No because the margin is above the requirement at 38%
c.-150%
Explanation:
a.
1000 shares*$40 per share = 40000
margin requirement is 50% so equity = 20000
1 year later price increase to 50
$1000 shares*$50 per share = 50000
dividend = $2*1000 = 2000
margin = 20000/52000 = 38%
b.
No because the margin is above the requirement at 38%
c.
Price of 1000 stock year 1 at 50$/share = 50000
40000 – 50000 = -10000
Rate of return = (-10000 -20000)/20000 = -150%
The equation of (ending value minus beginning value) and income return totalled, then divided by beginning value is used to find "rate of return".
<h3>What is income returns?</h3>
The portion of a fund's total returns that came through income distributions is known as the income return. For bond funds, income return will frequently be larger than capital return, while for stock funds, it will typically be lower. The fund's total return is calculated by adding the income return and the capital return together.
Rate of Return- The net gain or loss of an investment over a given time period, stated as a percentage of the investment's starting cost, is known as a rate of return (RoR).
Some key features of rate of return are-
- ROI is computed by first dividing the net return by the investment's cost, then multiplying the result by 100. This new number, which represents the net return, is then obtained by subtracting the investment's original value from its final value.
- According to conventional thinking, a fair return on an investment in stocks is one that is at least 7 percent annually. Additionally, this relates to the S&P 500's average annual return when inflation is taken into account.
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Answer:
(1) introduction
Explanation:
Pioneering advertising creates consumers awareness about the availability of a totally new product as well as explaining its use.
Roy is a sole trader if he is not setting up a company instead starts a business.
<h3>What is a Business?</h3>
A business is the process of selling goods or services and earning revenue and profits through it, the business generates revenue which is deducted by the expenses incurred by the business. The business ensures the strategy to have a balance between these expenses and revenue so that there is some residue profit.
The sole trader is the business where the owner of the business is highly involved in day to day running of the business taking all the strategic decisions and responsible for all the debts of the business.
On the other hand a limited liability company is a business in which the owner of the company can be involved in day to day running of the operations but is not liable personally for the debts.
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Answer:
13.73%
Explanation:
Effective annual rate = (1 + APR / m ) ^m - 1
M = number of compounding = 365
= 0.1373 = 13.73%
