Everfi: Module 3

You buy a stock for $30 per share and sell it for $33 after holding it for slightly over a year and collecting a $0.75 per share

telo118 [61]

Answer:

The answer is: After-tax rate of return = 9.8% .

Explanation:

Please find the calculations which are shown in details as below:

Pre-tax dividend earning is $0.75, Tax rate on ordinary income is 28% => After-tax dividend earning = 0.75 x (1 - 28%) = $0.54;

Pre-tax capitals gain is $3 ( that is, $33 -$30), tax rate on capital gains is 20% => After-tax capital gains = 3 x ( 1 - 20%) = $2.4 ;

=> Total after-tax return = After-tax capital gains + After-tax dividend earning = 2.4 + 0.54 = $2.94 .

Thus, in percentage term, after-tax rate of return is 2.94/30 = 9.8%.

4 0

4 years ago

Expenses for a Pizza restaurant include raw material for pizza at $4.00 per slice, $116.00 as monthly rental and $45.00 monthly

ruslelena [56]

Answer:

The restaurant earned a profit of $1145.56 which is approximately $1146

Explanation:

the formula is given as:

Q x (sale price – material cost) – ( rental + insurance)/day - loss

Q = 200

Sale price = $10

Material cost = $4

rental = $116

insurance = $45

lost sale expense = $4

day = 25

increased demand = 212

= 200(10 - 4) - (116 + 45)/25 - (212 - 200)4

= 200(6) - 6.44 - 48

= 1200 - 6.44 - 48

= $1145.56

<em>This is approximately $1146</em>

3 0

4 years ago

Beginning merchandise inventory would be found on the worksheet in the

mrs_skeptik [129]

<span>A. income statement debit column</span>

6 0

3 years ago

Read 2 more answers

Which customers help in the profitability and growth of an organization? Both external and customers help in the profitability a

Tom [10]

Answer:

Satisfied and Loyal customers help in the profitability and growth of an organization.

Explanation:

When a company produces a product, they put their best in the design, process, manufacturing and dispatching of the product, so that their target customers use this product and gets satisfied. When consumers get the product of exactly their needs, they try to buy it again and again and becomes the loyal customers of that specific company. Such customers are the permanent customers of that organization and they are ready to pay for the product, thus helps in the profitability of the organization. Also when they talk about the product to other people, they become the marketing agents of the company, thus helping the company to grow. In this way, satisfied and loyal customers help in the profitability and growth of an organization.

8 0

3 years ago

On January 1, 2021, a company purchased a machine that cost $500,000 and had a residual value of $50,000. The machine is expecte

LUCKY_DIMON [66]

Answer:

Accumulated Depreciation expense for 2022 = $31,250

Explanation:

We know,

Depreciation expense under Unit-of-activity method = [(Cost - Salvage value) ÷ Total production during the useful life] x Usage during a period.

Given,

Purchase price = $500,000

Salvage value = $50,000

Total production during the useful life = 360,000 units

Total production during 2022 = 25,000 units

Therefore, depreciation expense for 2022 = [($500,000 - $50,000) ÷ 360,000 units] × 25,000 units

Depreciation expense = ($450,000 ÷ 360,000 units) × 25,000 units

Depreciation expense = $1.25 × 25,000 units

Accumulated Depreciation expense = $31,250

3 0

4 years ago