Answer:
Curtis
The total percentage return on the investment is:
= -7.86%.
Explanation:
a) Data and Calculations:
Initial share price at which the stock was purchased = $140
The selling share price = $119
Dividends earned during the stock ownership (holding period) = $10
Total returns, including proceeds from the sales = $129 ($119 + $10)
Total returns from holding the stock until sold
= Total returns + sales proceeds minus Initial purchase cost
= -$11 ($129 - $140)
Total percentage return on the investment = $11/$140 * 100
= 7.857
= 7.86%
Answer:
The effective rate of return on this investment is 8.33%.
Explanation:
The effective rate of return is an interest rate applied (either earned or paid) on an amount invested annually and when the amount is compounded more than one.
The formula to compute the effective rate of return is:
Effective rate of return ![=[(1+(\frac{Nominal\ Rate}{n} ))^{n})-1]](https://tex.z-dn.net/?f=%3D%5B%281%2B%28%5Cfrac%7BNominal%5C%20Rate%7D%7Bn%7D%20%29%29%5E%7Bn%7D%29-1%5D)
The nominal rate is 8% compounded annually.
Compute the effective rate of return as follows:
Effective rate of return
![=[(1+(\frac{0.08}{365} ))^{365})-1]\\=[(1.00022)^{365}-1]\\=[1.0833-1]\\=0.0833\\\approx8.33\%](https://tex.z-dn.net/?f=%3D%5B%281%2B%28%5Cfrac%7B0.08%7D%7B365%7D%20%29%29%5E%7B365%7D%29-1%5D%5C%5C%3D%5B%281.00022%29%5E%7B365%7D-1%5D%5C%5C%3D%5B1.0833-1%5D%5C%5C%3D0.0833%5C%5C%5Capprox8.33%5C%25)
Thus, the effective rate of return on this investment is 8.33%.
The complete question is:
Expected monetary value (EMV) is
A) the average or expected monetary outcome of a decision if it can be repeated a large number of times.
B) the average or expected value of the decision, if you know what would happen ahead of time.
C) the average or expected value of information if it were completely accurate.
D) the amount you would lose by not picking the best alternative.
E) a decision criterion that places an equal weight on all states of nature.
Answer:
the average or expected monetary outcome of a decision if it can be repeated a large number of times.
Explanation:
Expected monetary value is how much money a business forecast it will gain by making a decision. It is based on probability and becomes more complicated as you get more complex scenarios.
For example if a party is taking another to court the EMV is the realistic estimate of what the party can gain in settlement at court.
The expected monetary value should be replicable, that is if the decision is taken many times it should result in an average of the EMV amount.
Answer:
Carrot's gain = $397,560
Explanation:
given data
basis = $1,325,200
fair market value = $1,722,760
solution
we know according to the Section 336
it provides that if the property is subject to any liability then the fair market value can not less than the liability.
But here in our case the liability is less FMV.
so that Carrot's gain is same as ($1,722,760 - $1,325,200) = $397,560 on the distribution
so Carrot's gain = $397,560
