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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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Suppose there are 75 million people in the labor force. The labor force participation rate is 60% and the unemployment rate is 8
max2010maxim [7]

Answer:

a). The number of people in the working age population=125 million

b). The number of people who are part of the working-age population but not part of the labor force=50 million

c). The number of unemployed workers=6 million

d). The number of unemployed workers=69 million

Explanation:

a).

The labor force is the total number of people who are employed and also the unemployed who are looking for work.

The labor participation rate is a percentage expressed as;

Labor participation rate=(total number of employed+unemployed looking for work)/Total number in working age population

where;

total number of employed and unemployed looking for work=75 million

labor participation rate=60%

total number in working age population=p

replacing;

(60/100)=75 million/p

60 p=75 million×100

p=75 million×100/60

p=125 million

The number of people in the working age population=125 million

b). Working age population but not labor force=Total working age population-labor force

=(125-75)=50 million

The number of people who are part of the working-age population but not part of the labor force=50 million

c). Unemployment rate=(number of unemployed persons/labor force)×100

where;

number of unemployed persons=x

Unemployment rate=8%

labor force=75 million

replacing;

8/100=x/75 million

x=75 million×8/100=6 million

The number of unemployed workers=6 million

d). Labor force=number of employed workers+number of unemployed workers

where;

labor force=75 million

number of employed workers=y

number of unemployed workers=6 million

replacing;

75 million=y+6 million

y=(75-6) million

y=69 million

The number of unemployed workers=69 million

5 0
2 years ago
Joe Fixit has an appliance-repair business. He has more business than he can handle and wants to hire another repair person. Joe
Pavlova-9 [17]

Answer:

The marignal revenue that another worker would bring to Joe under these circumstances is $90.

If joe hires a new worker, the worker can repair 3 appliances per hour, and the mininum charge for appliance-repair is $30 plus parts. The marignal revenue is:

$30 x 3 appliances = $90

Because wages are equal to the marginal product of labor, the maximum amount that Joe would pay to a new person is $90.

3 0
2 years ago
Trey owns 250 shares of common stock in a toy–store company. This means that he owns a percentage of the company based on the pr
Sergeu [11.5K]

Answer:

The correct answer is D

Explanation:

The voting right is the right which is given to the shareholders of the company to vote on the matters of the corporate policy involving the decisions on the making of the BOD (Board of Directors), making changes in the operations of the corporation, issuing securities and initiate the corporate actions.

So, when the person owns 250 shares, which means owns the percentage of the company grounded on the proportion of the shares the person owns. Therefore, the person along with ownership gets the voting rights as well.

3 0
3 years ago
Price elasticity of demand along a linear, downward-sloping demand curve increases as price falls.
Ksivusya [100]
False.

It DECREASES. The midpoint of the demand curve will be unitary elastic, whereas above it, it will be elastic and below it, it will be inelastic.
8 0
3 years ago
17 students and 11 teachers went on a field trip to an art museum. Student tickets cost $8 each, and adult tickets cost $11 each
Veseljchak [2.6K]
$257 because (17x8)+(11x11)=257
5 0
3 years ago
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