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LekaFEV [45]
3 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]3 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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If Bob and Judy combine their savings of $1,260 and $975, respectively, and deposit this amount into an account that pays 2% ann
Andrew [12]

Answer:

The account balance after 4 years will be $2,420.

Explanation:

First we need to add Bob and Judy's amount to find the total amount that will be deposited. (1260+975)=2,235.

Now we will break up the annual interest into monthly interest because it will be compounded monthly. 2/12=0.166.

Then we will break up the 4 years into months also because the interest is compounded monthly. 4*12=48

Now we use the formula for compound interest

Final amount = Principal*(1+R)^N

Principal = 2,235

R= 0.166% or 0.00166

N= 48

We put these values into our formula

2,235*(1+0.00166)^48

=2,420

6 0
3 years ago
What is the term used to describe the linking of key product or service requirements to process capabilities?
Igoryamba

Answer:

Product or service profiling.

Explanation:

Product or service profiling is the term used to describe the linking of key product or service requirements to process capabilities.

Generally, most organizations and business owners use the product or service profiling strategy to enhance consistency through the identification of their key services or product line and as such are avail the opportunity to select the appropriate process, procedures and techniques to achieve their goals and objectives successfully.

3 0
2 years ago
Now suppose that the government immediately pursues an accommodative policy by increasing government purchases in response to th
scoundrel [369]

Answer:The output will be $billion and the price level will increase.

Explanation:Long term accommodative policies by government causes a shift to the right of aggregate demand curve in response to the left shifting of the aggregate supply curve in the short run.

This change will definitely cause an increase in aggregate demand without a corresponding increase in aggregate supply to meet the demand.

In doing this the government aims to permanently higher prices in order to restore employment and output to it's original level.

3 0
3 years ago
The following data were reported by a corporation: 20,000 15,000 3,000the number of outstanding shares is:
7nadin3 [17]

Outstanding shares will be 12,000 shares.

These are calculated as follows:

Here the number of shares are as follows;

Authorized shares are 20,000, Issued shares are 15,000, Treasury shares are 3,000

Therefore, the number of outstanding shares can be calculated as follows

Number of outstanding shares = Issued stock- Treasury stock

= 15,000-3,000

= 12,000

Hence the number of outstanding shares is 12,000

To know more about outstanding shares here:

brainly.com/question/17167434

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8 0
1 year ago
Kodak is a company name associated with photography. The company has recognized that digital photography is a threat to the futu
Ksivusya [100]

Answer:

The correct answer to the following question will be Option B (design competition).

Explanation:

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5 0
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