1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Taya2010 [7]
3 years ago
8

A stock sells for $6.99 on December 31, providing the seller with a 6% annual return. What was the price of the stock at the beg

inning of the year? $6.59 $1.16 $7.42 $5.84
Business
1 answer:
Dimas [21]3 years ago
6 0

Answer:

Correct option is 6.59

Explanation:

Selling price of stock at the end of the year is $6.99. Annual return rate is 6%. Price of stock at the beginning will be present value of stock valued at the end discounted at 6%. Computation is as shown below:

Present\ value\ or\ price\ of\ stock = Selling\ price\left ( \frac{1}{1+i} \right )^{n}

= 6.99\left ( \frac{1}{1+0.06} \right )^{1}

= \frac{6.99}{1.06}

= $6.59

Therefore, Stock's price in the beginning of the year is $6.59.

You might be interested in
What is the main thing you can learn from an income statement?
balandron [24]
Your detailed expenses cost of sales and if the business made a profit or loss.
7 0
3 years ago
Read 2 more answers
Which situation best illustrates the effects of inflation?
NNADVOKAT [17]

Answer:

B. A type of shirt that sold for $10 in 2000 costs $15 in 2020  

Explanation:

Inflation is a measure of the rate of rising prices of goods and services in an economy.

3 0
3 years ago
The consumer price index is the:
Dmitry [639]

Answer:

B. cost of a market basket of goods and services typically consumed in the current period.

5 0
4 years ago
Read 2 more answers
If the demand for apples is highly elastic and the supply is highly inelastic, then a tax imposed on apples will be paid:
RUDIKE [14]
A tax imposed on apples will be paid largely by THE SELLERS OF THE APPLES. The demand for apples being elastic means that small changes in price will cause large changes in quantity consumed. The supply for apples being inelastic means that the quantity supplied of apples is unaffected when the price of apple changes. This means that because of the imposed tax, the price of the apple will probably increase but since an increase in price will reduced the quantity bought, the sellers has to maintain the original price of the apples. In this case, the sellers of the apple will bear the larger parts of the imposed tax
6 0
4 years ago
Which of the following items is not a part of planning?
Savatey [412]
E. Objectional plan is the answer
4 0
3 years ago
Read 2 more answers
Other questions:
  • A client is losing motivation to exercise, so his trainer recommends spending 15 min before his next session thinking about the
    11·1 answer
  • When will the Social Security fund dry up at its current level?
    5·1 answer
  • The process where vendors ship the merchandise prepackaged to the distribution center in the quantities required for each store
    13·1 answer
  • What are consumer motives?
    5·1 answer
  • An article in the Wall Street Journal noted that many economists believe that GDP data for India are unreliable because "most en
    6·1 answer
  • Which of the following best addresses the economic question For whom to produce?
    11·1 answer
  • Which law authorizes Federal assistance in Presidentially declared disasters and prohibits discrimination during disaster relief
    6·1 answer
  • Should banks have to hold 100% of their deposits? Why or why not?
    12·1 answer
  • The Ace Battery Company has forecast its sales in units as follows: January February March April 1,200 May 1,050 June 1,000 July
    10·1 answer
  • A non-smoker that is 30 years old pays a 25% lower premium for life insurance than a smoker of the same age. If the smoker pays
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!