Ask question

Ask question

All categories

3 years ago

7

You purchased a share of stock for $29. One year later you received $2.40 as dividend and sold the share for $28. Your holding-p

eriod return was _________.

2 answers:

bekas [8.4K]3 years ago

5 0

Answer:

4.83%

Explanation:

Given that

Income = 28

End of period value = 2.40

Original value = 29

Recall that

HPR = ((Income + (end of period value - original value)) / original value) × 100

Therefore,

HPR = 28 + (2.40 - 29)/29 × 100

= (28 + ( - 26.6) / 29) × 100

= (1.4 / 29) × 100

= 0.04827 × 100

= 4. 83%

mart [117]3 years ago

4 0

Answer:

4.83%

Explanation:

Given that

Income = 28

End of period value = 2.40

Original value = 29

Holding period return is calculated as Income + (end of period value - original value)) ÷ original value) × 100

Hence to calculate the Holding period value

= 28 + (2.40 - 29)/29 × 100

= (28 + ( - 26.6) / 29) × 100

= (1.4 / 29) × 100

= 0.04827 × 100

= 4. 83%

You might be interested in

Absorption and Variable Costing Comparisons: Production Equals Sales Assume that Smuckers manufactures and sells 30,000 cases of

pantera1 [17]

Answer:

a:<u>Total Variable Costs $26 </u>

a:<u>Total Manufacturing Costs = $ 30</u>

b:<u>Net Income </u><u><em>Variable Costing</em></u><u> $100,000</u>

b: <u>Net Income </u><u><em>Absorption Costing</em></u><u> $ 100,000</u>

Explanation:

Smuckers Manufacturers

<u>Costs per case under Variable Costing</u>

Direct materials per case 16

Direct labor per case 7

Variable manufacturing overhead per case 3

<u>Total Variable Costs $26 </u>

<u>Costs per case under Absorption Costing</u>

Direct materials (30,000*16) 480,000

Direct labor (30,000*7) 210,000

Variable manufacturing overhead (30,000*3) 90,000

Total Variable Costs 780,000

Total fixed manufacturing overhead $120,000

Total Manufacturing Costs $ 900,000

<u>Total Manufacturing Costs per Case= $ 900,000/ 30,000= $ 30</u>

The difference between the variable and absorption costing is that the product costs include variable and fixed costs in absorption costing. But in variable costing the product costs include only variable costs.

<u><em> SMUCKERS </em></u>

<u><em>Variable Costing Income Statement </em></u>

<u><em>For the Third Quarter of 2017 </em></u>

<u><em></em></u>

Sales (30,000*34) 1020,000

Direct materials (30,000*16) 480,000

Direct labor (30,000*7) 210,000

Variable manufacturing overhead (30,000*3) 90,000

Total Variable Costs 780,000

Contribution Margin 240,000

Fixed Expenses 140,000

Total fixed manufacturing overhead $120,000

Fixed selling and administrative 20,000

<u>Net Income 100,000</u>

In this case the net income under both variable and absorption costing does not change because the units produced are units sold. No cost is charged to ending inventory under absorption costing.

<u><em>SMUCKERS </em></u>

<u><em>Absorption Costing Income Statement </em></u>

<u><em>For the Third Quarter of 2017 </em></u>

Sales (30,000*34) 1020,000

Direct materials (30,000*16) 480,000

Direct labor (30,000*7) 210,000

Variable manufacturing overhead (30,000*3) 90,000

Total fixed manufacturing overhead $120,000

Total Manufacturing Costs 900,000

Gross Profit 120,000

Fixed Expenses 20,000

Fixed selling and administrative 20,000

<u>Net Income 100,000</u>

3 0

4 years ago

What total unrealized holding gain would beresford report in its 2021 income statement relative to its investments in bonds?

Airida [17]

Total unrealized holding gain would Beresford report in its 2021 income statement relative to its investments in bonds is $36,600.

Unrealized holding gains are increases in the value of assets that a company or individual continues to hold.

This gain has not yet been reported on the entity's income statement as a realized gain.

The gain is considered realized once the asset is sold.

Assets are frequently held even after a gain in value has occurred, either because the owner expects another gain or because the owner does not want to pay taxes on the gain.

Therefore, total unrealized holding gain is the difference between the fair value of trading securities on 12/31/2021 and at 12/31/2020.

For the figures used refer to the attached image.

total unrealized holding gain = (76000 - 65000) + (98100 - 67000) + (58500 - 64000)

= 11000 + 31100 - 5500

= $36,600

Hence, the correct answer is $36,600.

Learn more about holding gain:

brainly.com/question/16629295

#SPJ4

8 0

1 year ago

Even though Kelly did not actively post the leaked information on social media, Don and the rest of the management team decided

yuradex [85]

Answer:1.Even though Kelly did not actively post the leaked information on social media, Don and the rest of the management team decided she was still responsible for the social media infringement because she

a.told someone information which led to the social media post.

2.In the case of Serena’s social media complaints about the company, Don says the key is that, though her comments did not put the company in a good light, there are important lines she did not cross. ________, racial bias, and foul language are the three examples he cites that would beinfringements on company social media policies.

a.Hate speech

3.What is Don’s response when Kelly tells him that the assistant manager labelled social media training a “low priority”?

a.He makes a note to make sure it’ll never happen again.

4.When Kelly continues to argue against the decision to let her go, Don tells her that he is sorry to see her go and that he will give her the best reference he can under the circumstances. Here, what is his strategy for managing this difficult confrontation?

a.showing empathy for the employee

5.After the confrontation with Kelly, Don says that one thing that did not help the decision to let Kelly go was that she refused to take ________ for the social media violation.

a.responsibility

Explanation:

6 0

3 years ago

A bond par value is $1,000 and the coupon rate is 4.3 percent. The bond price was $945.46 at the beginning of the year and $976.

Snezhnost [94]

Answer:

The bond's real return for the year was 5.49%

Explanation:

In order to calculate the bond's real return for the year we would have to calculate the following formula:

bond's real return for the year=(1+Nominal rate of return)/(1+Inflation) -1

According to the given data Inflation=2.2 percent

To calculate the Nominal rate of return we would have to calculate the following:

Nominal rate of return=(Selling price + Interest coupon - Purchase price)/Purchase price

According to the given data:

Selling price=$976.26

Interest coupon=$43

Purchase price=$945.46

Therefore, Nominal rate of return=($976.26 + $43 - $945.46)/ $945.46

Nominal rate of return=7.81%

Therefore, bond's real return for the year= (1+7.81%)/(1+2.2%) -1

bond's real return for the year=5.49%

The bond's real return for the year was 5.49%

6 0

3 years ago

After long-run adjustments, a purely competitive market achieves Group of answer choices productive efficiency but not necessari

charle [14.2K]

Answer: both productive and allocative efficiency.

Explanation:

A purely competitive market, is a market where there are large numbers of firms which produces standardized product. The prices of the goods in the market are determined by the consumer demand and no supplier can influence the market price.

After long-run adjustments, a purely competitive market achieves both productive and allocative efficiency. This is due to the fact that the average variable cost will be minimized and thenoruce that's charged will be equal to the marginal cost.

7 0

3 years ago