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3 years ago

What steps should you take when preparing to establish an investment program

1 answer:

8 0

you should outline your goals: how do i spend my money; how much do I need to satisfy my goals.. how will i get the cash.. how long will it take to save the money...how much risk am i willing to take when i invest...what conditions in the economy or in my life could change my investment goals... are my goals reasonable... am I willing to make sacrifices to save... what will happen if I do not meet my goals.. Just some questions to ask yourself.

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Suppose a stock had an initial price of $57 per share, paid a dividend of $1.1 per share during the year, and had an ending shar

kolbaska11 [484]

Answer:

12.46%

Explanation:

Data provided

Dividend income = $1.1

Ending share per price = $63

Initial price = $57

The computation of the percentage total return is shown below:-

Total return = (Dividend income + (Ending share per price - Initial price)) ÷ Initial price

= ($1.1 + ($63 - $57)) ÷ 57

= ($1.1 + $6) ÷ 57

= $7.1 ÷ 57

= 0.12456

or 12.46%

6 0

2 years ago

Suppose the U.S. Treasury offers to sell you a bond for $687.25. No payments will be made until the bond matures 5 years from no

pantera1 [17]

Answer:

Explanation:

Data provided as per question is as given below:-

Redeemed amount = $1,000

Sale value of Bond = $687.25

Number of year = 5

The computation of interest rate is as shown below:-

Interest rate = (Redeemed amount ÷ Sale value of bond) ^ (1 ÷ Number of Year) - 1

= (1,000 ÷ 747.25) ^ (1 ÷ 5) - 1

= (1.338) ^ (0.2) - 1

= 0.06

= 6%

5 0

2 years ago

During the year, Trombley Incorporated has the following inventory transactions.

Furkat [3]

Answer:

a. Ending inventory = $162, Cost of Sales = $593, Gross Profit = $478

b. Ending inventory = $227, Cost of Sales = $528, Gross Profit = $543

c. Ending inventory = $492.30, Cost of Sales = $557.94 , Gross Profit = $513.06

d. FIFO

Explanation:

FIFO

Ending inventory = 18 units × $9 = $162

Total = $162

Cost of Sales = 11 units × $13 = $143

16 units × $12= $192

21 units × $11 = $231

3 units × $9 = $27

Total = $593

Gross Profit = Sales less Cost of Sales

= (51 units × $21) - $593

= $1,071 - $593

= $478

LIFO

Ending inventory = 11 units × $13 = $143

7 units × $12 = $84

Total = $227

Cost of Sales = 9 units × $12 = $108

21 units × $11 = $231

21 units × $9 = $189

Total = $528

Gross Profit = Sales less Cost of Sales

= (51 units × $21) - $528

= $1,071 - $528

= $543

Weighted-average cost

First determine the average cost.

Average cost = Total Cost / Total units

= $ 755 / 69

= $10.94

Ending inventory = Units Remaining × Average Price

= 45 units × $10.94

= $492.30

Cost of Sales = Units Sold × Average Cost

= 51 units × $10.94

= $557.94

Gross Profit = Sales less Cost of Sales

= (51 units × $21) - $557.94

= $1,071.00 - $557.94

= $513.06

8 0

3 years ago

In early July, Damon Rutton purchased a $70 ticket to the December 15 game of the Sarasota Shippers. Parking for the game was ex

Bingel [31]

Answer:

Sunk cost will be = $70

Explanation:

Sunk Cost refers to the cost for which the amount has been already spent, and cannot be recovered. These are generally incurred and then not regarded for decision making as irrespective of decision being viable or not this cost cannot be avoided.

In the given instance, Damon Rutton Purchased the ticket of $70

This is the only cost which has already been incurred, else other costs of parking and food will only be incurred if he visits the game of Sarasota Shippers.

When he spend some time with his wife sunk cost will be = $70

8 0

3 years ago

If d0 = $1.75, g (which is constant) = 3.6%, and p0 = $40.00, what is the stock's expected total return for the coming year?

Orlov [11]

Answer:

The answer is <u>"a. 8.13%".</u>

Explanation:

Given that;

d0 = $1.75

p0 = $40.00

g = 3.6% = 0.036

By using the formula;

Price of the stock = (Dividend this year)(1+g) ÷ (r - g)

By putting the values;

40 = (1.75)(1+0.036) ÷ (r - 0.036)

r - 0.036 = (1.75)(1.036) ÷ 40

r - 0.036 = 1.813 ÷ 40

r - 0.036 = 0.045325

r = 0.045325 + 0.036

r = 0.081325 = 0.081325 x 100

4 0

3 years ago

Read 2 more answers