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LekaFEV [45]
4 years ago
5

Fred Flintlock wants to earn a total of 10% on his investments. He recently purchased shares of ABC stock at a price of $20 a sh

are. The stock pays a $1 a year dividend. The price of ABC stock needs to _____ if Fred is to achieve his 10% rate of return.
A. remain constant
B. decrease by 5%
C. increase by 5%
D. increase by 10%
E. increase by 15%
Business
1 answer:
svlad2 [7]4 years ago
6 0

Answer:

Option (C) is correct.

Explanation:

Return on the stock = (Dividend ÷ Investment) + (capital gain ÷ investment )

= (Dividend ÷ Investment) + (Final price of the stock - initial price of the stock) ÷ Investment

10 = (1 ÷ 20) × 100 + ((final price - 20) ÷ 20) × 100

10 = 5 + 5 × ( final price - 20)

Final price = 21

Therefore, the stock price should increase by [(21 - 20) ÷ 20] × 100

                                                                            = 5%

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A) it is more accurate than accrual accounting.
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hich of the following is NOT one of the six questions that comprise the task of evaluating a company's resources and competitive
Vadim26 [7]

Answer:

The correct answer is "What are the company's most profitable geographic market segments?"

Explanation:

In order to research on the companys' resource and competitive position, a researcher does not need to ask questions related to the geographic market segments.

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I hope the answer is helpful.

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3 years ago
__________ is a major skill needed in tennis?
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Hand and eye coordination
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3 years ago
On November 1, 2018, New Morning Bakery signed a $195,000, 6%, six-month note payable with the amount borrowed plus accrued inte
Blizzard [7]

Answer:

total cash pay is $200850

Explanation:

given data

Bakery signed P = $195000

rate R = 6 %

time T = 6 month

to find out

cash amount will be needed to pay back with interest

solution

we find first interest for 6 month that is 6/12 year

so interest = P×R×T

interest = 195000×0.06×6/12

interest = $5850

so total amount pay = Principal  + Interest

total amount pay =195000  + 5850

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5 0
3 years ago
At May 1, 2020, Sheridan Company had beginning inventory consisting of 190 units with a unit cost of $7.30. During May, the comp
s2008m [1.1K]

Answer:

$6.71 per unit

Explanation:

The computation of average cost method is given below:-

Beginning Inventory

= 190 units × $7.30

= $1,387

Purchases

= 720 units × $7.30

= $5,256

Purchases

= 590 units × $5.80

= 3,422

Total units = 1,500

Total cost = $10,065

So, average cost per unit

Total cost ÷ Total number of units

= $10,065 ÷ 1,500

= $6.71 per unit

Therefore, to calculate the average cost per unit for May we simply divide 10,065 from 1,500

7 0
3 years ago
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