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leva [86]
2 years ago
15

Last year, you purchased a stock at a price of $78.00 a share. Over the course of the year, you received $2.70 per share in divi

dends and inflation averaged 3.2 percent. Today, you sold your shares for $82.20 a share. What is your approximate real rate of return on this investment?
Business
1 answer:
lutik1710 [3]2 years ago
6 0

Answer:

5.65%

Explanation:

Last year a stock of $78.00 was bought

During the period of one year $2.70 was received in dividend and inflation averaged 3.2%

Today the shares was sold for $82.20

The first step is to calculate the nominal return

= ($82.20-$78.00+$2.70)/$78.00

= 6.9/78

= 0.0885×100

= 8.85%

Therefore, the approximate real rate can be calculated as follows

= 8.85%-3.2%

= 5.65%

Hence the approximate real rate of return on this investment is 5.65%

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The government of Wrexington, a country which has adopted American GDP accounting conventions, reported that GDP in quarter 3 wa
yanalaym [24]

Answer:

C. $12 billion.

Explanation:

GDP refers to the Gross domestic product. It means that the market value of all final goods and services produced within the country.

Since in the question the GDP reported in quarter 3 was $12 billion and the same is to be considered as a GDP because it reflected the market value of all final goods and services

Therefore, the correct option is c.

3 0
3 years ago
A firm has a profit margin of 6% and an equity multiplier of 1.5. Its sales are $230 million, and it has total assets of $115 mi
Ket [755]

Answer:

18%

Explanation:

In this question, we use the DuPont Analysis which is shown below:

ROE = Profit margin × Total assets turnover × Equity multiplier

ROE = 6% × 2 × 1.5

        = 18%

The total assets turnover is shown below:

= Sales ÷ total assets

= $230 million ÷ $115 million

= 2

Simply we apply the ROE formula in which the profit margin is multiplied with the total assets turnover and the equity multiplier

7 0
3 years ago
Is there an opportunity cost to increased investment in capital goods today? Choose one: A. No, increased production of capital
g100num [7]

Answer: Option E

           

Explanation: Opportunity cost refers to the cost of loosing profit while choosing one alternative over other.

Taking the given case into consideration, if we invest more in capital goods today then the future generation will get more consumer goods and vice - versa. However as the capital is a limited resources we have to make a choice between capital goods and consumer goods in the present.

Hence if we invest more in capital goods today we will be having less of consumer goods.

3 0
3 years ago
Read 2 more answers
An individual who wants to lose 30 pounds and therefore selects a particular weight and exercise program to do so is demonstrati
blsea [12.9K]
The answer is Forethought
5 0
3 years ago
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What is it called when a company determines how much of a product to create.
Yanka [14]

Answer:

- Forecasting

Explanation:

Forecasting is a technique used by businesses to determine how much of a good to produce.  Companies rely heavily on past sales volumes to forecast future productions.  Apart from past sales, firms also consider trends in the industry and the countries economic status.

Forecasting is also known as projecting as it involves a rational way of predicting future productions.

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2 years ago
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