Answer:
The holding period return of the stock is - 6 % or - 6.0%
Explanation:
Solution
Given that:
You are thinking of purchasing a stock that currently sells for= $50
The expected price of the stock =$45
Dividend expected to be paid =$2
Risk free rate = 5%
Market return = 10%
Stock (beta) = 0.85
We will now find the holding period return of the stock which is given below:
The formula for calculating the holding period return of a stock is given as,
= The Expected price in a year + Dividend earned during the year – Purchase Price / Purchase Price
We recall that:
The Purchase Price = $ 50
Expected price in a year = $ 45
Dividend earned during the year = $ 2
Now,
By Applying the above values in the formula we have the holding period return of the stock as
:
= [45 + 2 – 50] / 50
= - 3 / 50
= - 0.0600 = - 6.00 %
= - 6.0 % ( when rounded off to one decimal place )
Therefore, the Holding period return of the stock is - 6 % or - 6.0%
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Answer:
Calculation of sales returns = 5% of $12,700,000 =$ 635,000
Actual price of sales returns = 60 % of $ 635,000= $ 381,000
Difference in price = $ 635,000- $ 381,000= $ 254,000
1)
Sales Account $ 635,000 (dr)
Sundry Debtors / Customers Account $ 635,000 (cr)
2)
Sales Returns or Allowances $ 245,000 (dr) ( difference in price)
Trading Profit & Loss Account $ 245,000 (cr)
Answer:
Marketing management.
Explanation:
Marketing management is defined as the process by which conception is implemented, promotion and distribution of ideas, goods and services aimed at satisfying organisational objectives.
It focuses on application of marketing orientation and techniques in an organisation, and management of a firm's marketing resources and activities.
Marketing management involves use or research by marketers for market analysis. Some of the research methods used are qualitative market research, quantitative market research, experimental techniques, and observational techniques.
Answer: Time period assumption.
Explanation:
The time period assumption is an accounting standard that enables businesses to record their financial activities for a given time frame ( it could be a measure of either yearly, half yearly, monthly, weekly or daily financial activities).
