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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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6 0
3 years ago
The journal entry to transfer completed products from production to finished goods inventory includes which two of the following
Talja [164]

Answer:

Debit finished goods inventory

Credit Work in Process Inventory

Explanation:

The journal entry that is required to transfer the completed products from the production stage to finished goods inventory which is the amount of goods in the inventory that have been produced and as well is available and ready for customer to buy will includes to Debit finished goods inventory and to Credit Work in Process. Inventory

Debit finished goods inventory

Credit Work in Process Inventory

(Being to record finished goods inventory)

7 0
3 years ago
alicia worked in the customer service department and received a large amount of e-mail. her job required her to open e-mail and
Daniel [21]
Wait a sec. Is the multiple choice 
Antivirus Cleaner
Data encryption
Firewall

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8 0
3 years ago
Read 2 more answers
Suppose you just bought a 25-year annuity of $8,200 per year at the current interest rate of 12 percent per year. What is the va
zhannawk [14.2K]

Answer:

64,313.74 ; 95,559.38 ; 47,283.11

Explanation:

by definition the present value of an annuity is given by:

a_{n} =P*\frac{1-(1+i)^{-n} }{i}

where a_{n} is the present value of the annuity, i is the interest rate for every period payment, n is the number of payments, and P is the regular amount paid. so applying to this particular problem, we have:

1. P=8,200, n=25, i=12%

a_{n} =8,200*\frac{1-(1+12\%)^{-25}}{12\%}

a_{n} =64,313.74

2. P=8,200, n=25, i=7%

a_{n} =8,200*\frac{1-(1+7\%)^{-25} }{7\%}

a_{n} =95,559.38

3. P=8,200, n=25, i=17%

a_{n} =8,200*\frac{1-(1+17\%)^{-25} }{17\%}

a_{n} =47,283.11

6 0
3 years ago
Steadigen Company sells two generators long dash Model A and Model Blong dashfor $ 432 per unit and $ 410 per unit, respectively
ch4aika [34]

Answer:

False

Explanation:

Contribution margin per unit = Sales -  variable cost

Contribution margin per unit (Model A) = $432 - $404

Contribution margin per unit (Model A) = $28 per unit

Contribution margin per unit (Model B) = $410 - $304

Contribution margin per unit (Model B) = $106 per unit

False, Contribution margin per unit (Model B) is higher so,  motivated to push sales of Model A will be false.

Break-even in units = Fixed cost / Contribution margin per unit

Break-even in units (Model A) =  Fixed cost / $28

Break-even in units (Model B) =  Fixed cost / $106

6 0
3 years ago
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