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Vsevolod [243]
3 years ago
14

Roger purchased a stock for $16 a share. The stock paid a $1 annual dividend and increased in price by $2 a year for the followi

ng three years. What is the arithmetic average annual capital gain
Business
1 answer:
Gemiola [76]3 years ago
8 0

Answer:

The answer is 11.2%

Explanation:

Cost of acquisition: $16 per share

Annual dividend: $1

The stock increases by $2 every year for 3 years. Therefore, we have:

First year is $16 per share

Second year is $18 per share

Third year is $20 per share.

The arithmetic average annual capital gain will be

($2/$16 + $2/$18 + $2/$20)/3

(0.125 + 0.111 + 0.1) / 3

0.336/3

0.112

Expressed as a percentage:

= 11.2%

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For a long time, when a team from the American Football Conference won the Super Bowl, the stock market had a bad year; when a t
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This is an illustration of correlation without causation.

Explanation:

For Example:

The inspectors who are poorly informed calculate shoe size and decipher comprehension. You note that both are linked favourably. Their report claiming smaller feet lead to better reading skills is, of course, denied. Given the connection between the two, foot size does not affect better reading abilities.

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Mia has an investment that is worth $12,000 after 4 years. If the initial investment was $8,000, what is the annual simple inter
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Answer: 12.5 %

Explanation:

Hi, to answer this question we have to apply the simple interest formula:  

I = p x r x t  

Where:  

I = interest (investment after interests - principal; 12000-8000=4000)

P = Principal Amount (initial invest)  

r = Interest Rate (decimal form)  

t= time  

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Solving for x :

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Since the interest rate is in decimal form, we have to multiply it by 100 to obtain the percentage.

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