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Talja [164]
3 years ago
14

7. Rate of Return. A stock is selling today for $40 per share. At the end of the year, it pays a dividend of $2 per share and se

lls for $44. a. What is the total rate of return on the stock? b. What are the dividend yield and percentage capital gain? c. Now suppose the year-end stock price after the dividend is paid is $36. What are the dividend yield and percentage capital gain in this case?
Business
1 answer:
LenKa [72]3 years ago
6 0

Answer:

a 15%

b dividend yield: 5%

  capital gain 10%

c if year-end price decrease to $36 then capital gain:

36/40 - 1 = -10%

negative 10%  thus, a 10% loss.

Explanation:

Beginning of the year price:: 40

At the end of the year:

dividends $ 2.00

Price: $44

<u>Total rate of return:</u>

(44 + 2) / 40 - 1 = 46/40 -1 = 0.15 = 15%

<u>Dividend Yield: </u>dividend per share/ price per share

$2 / 40 = 0,05 = 5%

<u>capital gain:</u>  end-year /beginning - 1

44 / 40 - 1 = 0.10 = 10%

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Question 2
Vesnalui [34]

Answer:

d. willingness to pay of all buyers in the market.

Explanation:

The demand curve shows the relationship between the price of a good or service and the quantity demanded at a particular time.

Therefore, a demand curve reflects:

a. highest price buyers are willing to pay for each quantity.

b.quantity that each buyer will ultimately purchase.

c. value each buyer in the market places on the good.

With this in mind, what the demand curve does not reflect, with these in mind is a willingness to pay of all buyers in the market.

8 0
2 years ago
Ferguson corp. purchased inventory on account for $20,000. the entry to record this transaction would include?
Marianna [84]

The entry to record this transaction would include:

Dr. Inventory $20,000

Cr. Accounts payable    $20,000

What does it mean to purchase inventory on account?

Purchasing the inventory on account for $20,000 means that Ferguson corp. did not make payment for the inventory immediately, it rather purchased the inventory on credit with a promise to pay later.

As a result, the liability of Ferguson corp. has increased, specifically, the company would credit accounts payable with $20,000 such that inventory, which is the receiving account is debited with the same amount

Find out more about journal entry on:brainly.com/question/11312217

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8 0
2 years ago
What American business had a monopoly on the fur trade in the Far West?
navik [9.2K]
C. John Jacob Astor.

The American business that had a monopoly on the fur trade in the far west was founded by John Jacob Astor.

The business was called American Fur Company. Since it was founded, the company grew to monopolize the fur trade in the United States by 1830. It became one of the largest and wealthiest businesses in the United States.
7 0
3 years ago
Rodriguez Corporation issues 10,000 shares of its common stock for $196,400 cash on February 20. Prepare journal entries to reco
emmainna [20.7K]
I’m not going to be able to get my homework homework but I’m not gonna be going back to school
3 0
3 years ago
A company started the year with $10,000 of inventory. Purchases for resale during the year were $20,000. Inventory on December 3
Monica [59]

The inventory indicates that the cost of goods sold will be $25000.

<h3>How to calculate the cost of goods sold</h3>

It should be noted that the cost of goods sold ic calculated through the formula:

= Opening inventory + Purchases - Closing inventory

= $10000 + $20000 - $5000

= $25000

Therefore, the cost of goods sold is $25000.

Learn more about inventory on:

brainly.com/question/24868116

7 0
2 years ago
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