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lyudmila [28]
3 years ago
11

Suppose a stock had an initial price of $70 per share, paid a dividend of $2.30 per share during the year, and had an ending sha

re price of $82.
Requried:
a. Compute the percentage total return.
b. What was the dividend yield and the capital gains yield?
Business
1 answer:
SVEN [57.7K]3 years ago
6 0

Answer:

Stock, Dividend, and Yield:

a) Computation of the percentage total return:

Total return = Dividend + Capital appreciation = $14.30 ($2.30 + $12)

Percentage of total return = $14.30/$70 x 100 = 20.43%

b1) Dividend yield = Dividend per share / price per share = $2.30/$70 = 0.032857 or 3.29%

b2) Capital gains yield = (Current price - initial investment)/ initial investment = ($82 - $70)/$70 = 0.1714 or 17%

Explanation:

a) The Dividend yield is a financial ratio (dividend/price) that shows how much a company pays out in dividends each year relative to its stock price.  

b) Capital gains yield is the percentage price appreciation on an investment. It is calculated as the increase in the price of an investment, divided by its original acquisition cost.  For instance, an equity security that is purchased for $700 and later sold for $825, the capital gains yield is 17.86%.

c) The total return from an investment is the sum of the dividend or interest received plus capital gains.

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Mary has a few specific items she would like to leave to her sister, Ann. She would like to leave the balance of her estate to h
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Answer:

The residuary clause

Explanation: As Mary would like to leave the balance of her estate to her brother tom this will fall under the  residuary clause.

4 0
3 years ago
You operate a small catering firm specializing in sit-down dinner parties that you prepare and serve yourself with no helpers. A
Greeley [361]
Well I would say B because the passage states that she doesn't have the staff and so on and so forth. But it didn't say that she couldn't cook it so I would cook it but make her subcontract the rest.
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3 years ago
When countries specialize in the production of goods they have the comparative advantage in, both ___________ and ______________
Anna71 [15]

Based on the question above, <u>demand and supply</u> will increase.

<h3>Demand</h3>
  • demand is the quantity of a good that consumers are willing and able to buy at various prices during a given period of time.

<h3>Supply</h3>
  • supply is the amount of a resource that firms, manufacturers, labourers, providers of financial assets, or other economic agents are willing and able to provide to the marketplace or to an individual.

Therefore, the correct answers are demand and supply.

Learn more here:https://brainly.in/question/19402695

7 0
2 years ago
Sandhill Warehouse distributes hardback books to retail stores and extends credit terms of 2/10, n/30 to all of its customers. D
Artyom0805 [142]

Answer:

Sandhill Warehouse

Journal Entries:

June 1:

Debit Inventory Account $2,575

Credit Accounts Payable (Catlin Publishers)

To record purchase on account, terms 2/10, n/30.

June 3:

Debit Accounts Receivable (Garfunkel Bookstore) $1,300

Credit Sales $1,300

To record sales of books on account.

Debit Cost of Goods Sold $900

Credit Inventory Account $900

To record cost of books sold.

June 6:

Debit Accounts Payable (Catlin Publishers) $75

Credit Inventory Account $75

To record credit for books returned.

June 9:

Debit Accounts Payable (Catlin Publishers) $2,500

Credit Cash Discount $50

Credit Cash Account $2,450

To record payment on account.

June 15:

Debit Cash Account $1,300

Credit Accounts Receivable (Garfunkel Bookstore) $1,300

To record cash receipt on account.

June 17:

Debit Accounts Receivable (Bell Tower) $1,150

Credit Sales Account $1,150

To record books sold on account.

Debit Cost of Goods Sold $750

Credit Inventory Account $750

To record cost of books sold.

June 20:

Debit Inventory Account $900

Credit Accounts Payable (Priceless Book Publishers) $900

To record purchase on account, terms 3/15, n/30.

June 24:

Debit Cash Account $1,127

Debit Cash Discount $23

Credit Accounts Receivable (Bell Tower) $ 1,150

To record cash receipt on account.

June 26:

Debit Accounts Payable (Priceless Book Publishers) $900

Credit Cash Discount $27

Credit Cash Account $873

To record payment on account.

June 28:

Debit Accounts Receivable (General Bookstore) $1,900

Credit Sales $1,900

To record sale of books on account.

Debit Cost of Goods Sold $970

Credit Inventory Account $970

To record cost of books sold.

June 30:

Debit Sales (Returns) $130

Credit Accounts Receivable (General Bookstore) $130

To record Sales credit

Debit Inventory Account $90

Credit Cost of Goods Sold $90

To record cost of returned books.

Explanation:

1. Purchase of books on account increases inventory and Accounts Payable.

2. Sale of books on account increases Sales and Accounts Receivable.  It also reduces the Inventory Account and increases the Cost of Sales.

3. Return on Purchases reverses the entries made when goods were purchased.

4. Since Garfunkel Bookstore paid after 10 days, it could not enjoy the 2% cash discount on offer.

5. Bell Tower paid within 10 days and enjoyed the 2% cash discount.

6. Priceless Book Publishers was paid within 15 days, so the 3% cash discount applies.

7. Return on Sales reverses the entries during sales.  |t reduces Sales by a contra account called Sales Returns and the Accounts Receivable.  The inventory account is increased and the Cost of Sales is reduced.

8.  Journal entries record the daily transactions of a business as they occur.  From the general journal, postings are made to the Ledger.

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3 years ago
Which of the following is an example of a functional skill?
Verizon [17]

Answer:

The most basic of functional skills are those skills that we usually acquire in the first few years of life: walking, self-feeding, self-toileting, and making simple requests.

Explanation:

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