Answer:
Dollar profit loss = $3
Holding period return = negative 9%
Explanation:
In order to find the dollar profit or loss return we will add the dividend and selling price because that the dividend plus the selling price is the cash that Travis receives or the positive cash and we will subtract the buying price from it because it is the negative cash flow. So we will add all the positive cash flows and subtract negative cash flow from it in order to find the dollar profit loss or return.
Selling price = 27.65
Dividend = 0.85
Selling price + Dividend= 28.5
Selling price = 31.50
Dollar profit loss or return = 28.50-31.5=-3
Loss= $3
In order to find the holding period return we will divide add the dividend and selling price , subtract buying price from it and then divide it by buying price.
(27.65+0.85-31.5)/31.5= -0.09 = -9%
Holding period return = negative 9%
Answer:
Connecting the world over time
Explanation:
Is the process of interaction of businesses and exchanges worldwide.
Answer:
$7,213.40
Explanation:
The computation of the net present value is shown below:
= Present value of all yearly cash inflows after applying discount factor - initial investment
where,
Initial investment is $50,000
And, the present value till 3 year would be
= Annual cash flows × PVIFA factor for 3 years at 12%
= $18,000 × 2.4018
= $42,232.40
And, the present value for fourth year would be
= Annual cash flows × present value factor
= $22,000 × 0.6355
= $13,981
So, the total present value would be
= $43,232.40 + $13,981
= $57,213.40
Since the annual cash flows are same for the three years so we use the PVIFA table
Refer to the PVIFA table
Now put these values to the above formula
So, the value would be equal to
= $57,213.40 - $50,000
= $7,213.40
Banks make a profit by c. charging interest
Answer:
d.) Ethics are the standard of what is right and wrong, and they are based on our values. Being ethical requires a moral judgement, and that's not always easy. Ethical behavior takes courage and has to be practiced.
