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vova2212 [387]
3 years ago
14

Last year, you purchased a stock at a price of $60.00 a share. Over the course of the year, you received $2.90 per share in divi

dends and inflation averaged 3.4 percent. Today, you sold your shares for $65.60 a share. What is your approximate real rate of return on this investment
Business
2 answers:
zalisa [80]3 years ago
3 0

Answer:

Real rate of return= 13.7%

Explanation:

<em>The return on investment is the sum of the dividends earned and capital gains made during the holding period of the investment. </em>

<em>Dividend is the proportion of the profit made by a company which is paid to shareholders.  </em>

<em>Capital gains is another type of the return made on an equity investment as a result of increase in the value of the shares. It is difference between the cost of the share and the value at the time of disposal. </em>

<em>Therefore, we can can compute the return on the investment as follows: </em>

The total return = (2.90) + (65.60-60)= 8.5

To determine the real return, we adjust the nominal return for the impact of inflation as follows:

Real total return ($) =  8.5/1.034=8.220

Total return in (%) = (8.220 /60)× 100= 13.7%

xxMikexx [17]3 years ago
3 0

Answer:

1.1%

Explanation:

To calculate the approximate real rate of return on the investment, we first need to calculate the nominal rate of return. As shown below:

Nominal Return = (Price of Share Sold - Price of the Share + Dividend received on share) / Price of the Share x 100

Nominal return = ($65.60 - $60.00 + $2.90) / $60.00

= 0.045 x 100

= 4.5%

Then we deduct the inflation rate from the nominal return to get the approximate real rate. This calculate below:

Approximate real rate = Nominal Return - Inflation rate

Approximate real rate = 4.5% - 3.4%

= 1.1%

Hence, the approximate real rate  on this investment is 1.1%.

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Newsome Inc. buys on terms of 3/15, net 45. It does not take the discount, and it generally pays after 60 days. What is the nomi
gogolik [260]

Answer:

16.22%

Explanation:

3/15, net 45 means that if Newsome pays within 15 days, it will get discount of 3%, otherwise it can pay within 45 days in full.

Nominal annual percentage cost of  non-free trade credit based on 365 days can be calculated using the below formula:

Discount %/(100%-Discount %)*(365/(Actual credit days – Discount days))

In this case

Discount%=2%

Actual credit days=60

Discount period=15

Cost of non- free credit=2%/(100%-2%)*(365/(60-15)

                                       =2%/98%*(365/45)

                                       =0.02*8.11

                                       =16.22%

5 0
3 years ago
An air defense system can be divided into how many categories, depending on their role and type of target they are protecting?
castortr0y [4]

An air defense system can be divided into 2 categories.

Explanation:

The U.S. military relies on a variety of missiles launched from finger-held to vehicle assembled systems. The Air Defense Artillery was the anti-aircraft weapons branch (for example, surface-to-air rockets).

The Missile Defense Agency's purpose is to protect stationed forces, allies, and partners, via a layered missile defence system, against hypersonic and ballistic missile threats of all kinds.

For example, two strong radars have been used on a landing pad in the Pacific to detect ICBM, another on Wake Island. The destination also was tracked by satellites equipped with infrared sensors.

6 0
3 years ago
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Lady bird [3.3K]

Answer: A. Is the answer

Explanation: I took the quiz and got it right

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3 years ago
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Answer: largely efficient

Explanation:

The fact that less than half of all equity fund managers beat the market in most years indicate that the stock market is largely efficient.

According to the strong-form hypothesis of the efficient market, when there is an efficient market, all the private and public information would be reflected in the prices of the stock.

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2 years ago
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hammer [34]

Answer:

D. The halo effect

Explanation:

Bias occurs when an individual lacks objectivity and impartiality in making decisions. There are various kinds of bias. However, in this scenario, the bias associated with here is the halo effect. The halo effect is a form of bias in which an individual opinion or feel concerning an individual or an event is influenced by the impression the individual gets from the other individual or event. It is when an overall judgement is made on an individual based on some specific characteristics or traits of the person. In this case, because of the polite and nice characteristics of the salesperson, Jarvis assumes that she's an effective salesperson. Of which those characteristics has nothing to do with effectiveness in sales.

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