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Aleks04 [339]
3 years ago
14

Describe an example of an equity investment that can also produce income. (1-3 sentences)

Business
1 answer:
maxonik [38]3 years ago
4 0
We can take an example of an equity income<span> that can also produce income</span> is the profit paid by the organizations of which you have offers of stocks. Organizations pay yearly profits to its investors. Or another example is that you could lease or rent a house and get month to month rent from the renter.
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Assume again that the cost of capital is 7 percent and the effective tax rate is 40 percent. How would the payback, internal rat
vfiekz [6]

Answer:

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If a stock is purchased for $100 per share and held one year, during which time a quarterly dividend of $1.5 is paid, each quart
xenn [34]

Answer:

Total yield or rate of return is 0.36 or 36%

Explanation:

To calculate rate of return which is also the total yield on the stock, we will use the following formula,

Total Yield = (D + C) / P0

Where,

  • D represents dividends paid by the stock during the year
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  • P0 is the purchase price or price in Year 0

Total dividends for the year = 1.5 * 4 = $6

C = 130 - 100 = $30

Total Yield = (6 + 30) / 100

Total yield = 0.36 or 36%

7 0
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Brainliest Answer!! What Type of competitive situation is this?
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