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photoshop1234 [79]
3 years ago
8

If during the year the portfolio manager sells all of the holdings of stock D and replaces it with 150,000 shares of stock E at

$30 per share and 150,000 shares of stock F at $40 per share, what is the portfolio turnover rate?Stock - Sahres - Price
A. 210,000 - $30
B. 310,000 - 35
C. 410,000 - 10
D. 610,000 - 15
Business
1 answer:
eimsori [14]3 years ago
7 0

Answer:

The correct answer is 30.10%.

Explanation:

According to the scenario, the given data are as follows:

Stock A price = $30

Value of stock A = $30 × 210,000 = $6,300,000

Stock B price = $35

Value of stock B = $35 × 310,000 = $10,850,000

Stock C price = $10

Value of stock C = $10 × 410,000 = $4,100,000

Stock D price = $15

Value of stock D = $15 × 610,000 = $9,150,000

So, We can calculate the portfolio turnover rate by using following formula:

Portfolio turnover rate = Value of stocks sold or purchase / Market Value of Assets

Where, Market Value of Assets = Value of stock A + Value of stock B +Value of stock C + Value of stock D

= $6,300,000 + $10,850,000 + $4,100,000 + $9,150,000

= $30,400,000

And Value of stock sold = value of stock D = $9,150,000

So, by putting the following values in the formula:

= Turnover Rate = 9,150,000 / 30,400,000

= 30.10%

Hence, the portfolio turnover rate is 30.10%.

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Harry is a citizen and resident of Saudi Arabia. During the current year, Harry never visits the United States, nor does he hold
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Answer:

The source of income is the capital gain realized when Harry sold the stocks of Extel Corporation. Generally, nonresident aliens (like Harry) are subject to a 30% tax on all their US income sources. E.g. if Harry made a capital gain of $1,000 when he sold the stocks, he will need to pay $300 to the IRS.

Some exemptions apply to foreign students, resident aliens or people that work for foreign governments, but Harry doesn't fit in any of these categories.

7 0
2 years ago
After a new company has developed a customer base, management needs to build more structure into the organization. In Greiner’s
Colt1911 [192]

Answer:

The correct word for the blank space is: Phase 2 - Direction.

Explanation:

American Professor Larry Greiner (born in 1933) proposed his Growth Cycle model to explain the process businesses go through at the moment of conducting its operations. According to Greiner, the process faced five (5) stages: <em>Creativity, Direction, Delegation, Coordination, </em>and <em>Collaboration</em>,

In phase 2 - Direction, executives establish the organizational structure of the firm focusing on accounting and capital management at the moment of making decisions. Management is centralized.

6 0
3 years ago
Brickhouse is expected to pay a dividend of $2.85 and $2.34 over the next two years, respectively. After that, the company is ex
irina1246 [14]

Answer:

The stock price is $31.14

Explanation:

The value of Brickhouse stock today is the present values of future cash flows from the stock discounted using the required rate of return of 10.7% as the discount  rate as done below:

Years               cash flows  discount factor                        Present values

1                            $2.85     1/(1+10.7%)^1=0.903342367        $2.57

2                            $2.34    1/(1+10.7%)^2=0.816027432         $1.91

3 & beyond          *$32.67  1/(1+10.7%)^2=0.816027432         $ 26.66  

                                                             total present values= $31.14

* the year 3 and beyond represents the terminal value of the stock,which is computed using the formula below

=D2*(1+g)/r-g

D2 is the year dividend of $2.34

g is the dividend growth rate of 3.3%

r is the required rate of return which 10.7%

terminal value=$2.34*(1+3.3%)/(10.7%-3.3%)

                        =2.41722 /0.074 =$32.67  

6 0
3 years ago
A farmer is considering the installation of a fuel storage system that will save $0.065 per gallon because the fuel can be purch
photoshop1234 [79]

Answer:

yes and because yes

Explanation:

5 0
3 years ago
will lie above the marginal product curve for the firm with less capital. must equal the marginal product curve for the firm wit
Ipatiy [6.2K]

Answer:

busineess would have to chnage that

3 0
2 years ago
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