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Alla [95]
3 years ago
11

A stock is selling today for $40 per share. At the end of the year, it pays a dividend of $2 per share and sells for $44. a. Wha

t is the total rate of return on the stock?
Business
1 answer:
morpeh [17]3 years ago
3 0

Answer:

The total rate of return on the stock is 14%.

Explanation:

The sources of income from a stock are dividends and increase in its value. Therefore, the total rate of return on stock is calculated by dividing the addition of appreciation in the of the stock and dividends paid by the original stock price.

Therefore, the total rate of return on the stock can be calculated using the following formula:

Total rate of return = [(P1 - Po) + D] / Po .......................... (1)

Where;

P1 = Ending stock price = $44

Po = Initial stock price = $40

D = Dividend paid = $2

Substituting the values into equation (1), we have:

Total rate of return = [(44 - 40) + 2] / 44

Total rate of return = [4 + 2] / 44

Total rate of return = 6 / 44

Total rate of return = 0.14, or 14%

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Alisiya [41]

Answer:

(i) $133.12

(ii) $297.6

(iii) $300.8

(iv) $301.6

Explanation:

From the compounding formula;

Future value = Present value (1+\frac{r}{m}) ^{mn}

where r is the rate, m is the number of payment per year, and n is the number of years.

Interest = future value - present value

Given that present value = $800, r = 8%, n = 4 years.

(i) annually,

m = 1, so that;

Future value = 800(1.08)^{4}

                     = $933.12

Interest = $933.12 - $800

             = $133.12

(ii) quarterly,

m = 3, so that;

Future value = 800(1+\frac{0.08}{3}) ^{(4x3)}

                      = 800(1.372)

                      = $1097.6

Interest = $1097.6 - $800

             = $297.6

(iii) monthly,

m = 12, so that;

Future value = 800(1+\frac{0.08}{12}) ^{(4x12)}

                     = 800(1.376)

                     = $1100.8

Interest = $1100.8 - $800

             = $300.8

(iv) weekly,

m = 54, so that;

Future value = 800(1+\frac{0.08}{54}) ^{(4x54)}

                     = 800(1.377)

                     = $1101.6

Interest = $1101.6 - $800

             = $301.6

4 0
3 years ago
____ Do they need engage with this work or is it entirely voluntary? Do they have a direct investment in having access to this i
tigry1 [53]

Answer: Dynamic of need

Explanation: There are two words of importance here. Dynamic and need.

Dynamic: when a person, place, or thing is energetic and active, this is know as being dynamic.

When something is dynamic it goes through a lot of process. Example: Someone with a dynamic personality is usually funny.

Need: to require something because it’s important or very essential.

Dynamic of need is when you have a active need of things, this things can be information which are very essential.

8 0
3 years ago
The journal entry to issue​ $600 of direct materials and​ $30 of indirect materials to production involves​ debit(s) to the​ ___
zmey [24]

The journal entry to issue​ $600 of direct materials and​ $30 of indirect materials to production involves​ debit(s) to the​ B. ​work-in-process inventory account for​ $600 and manufacturing overhead account for​ $30.


Work-in-process inventory refers to a company's goods that are waiting to be finished and completed. While these goods wait to be finished, they are waiting their overall value they are given as well. Manufacturing overhead refers to the items that are used for manufacturing. Everyting that has to take place and be paid for manufacturing to take place.

7 0
3 years ago
What does deficit spending require a government to do?
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Answer:

c. TAKE ON DEBT

Explanation:

5 0
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Read 2 more answers
Turn to Part C of the Systems Analyst’s Toolkit and review the concept of net present value (NPV). Determine the NPV for the fol
Tcecarenko [31]

Answer:

$-13,975.91

Explanation:

Net present value is the present value of after-tax cash flows from an investment less the amount invested.  

NPV can be calculated using a financial calculator  

Cash flow in year 0 =  $-95,000

Cash flow in year 1 =  $30,000

Cash flow each year from 2 to 5 =  $20,000

I = 12%

NPV = $-13,975.91

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

5 0
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