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KonstantinChe [14]
3 years ago
9

The Apple stock’s price is $112.92 on 8/1/15 and becomes $110.30 on 9/1/15. In August, Apple gives a dividend of $0.52 per share

. What is the holding period monthly return for Apple in August?
Business
1 answer:
ratelena [41]3 years ago
6 0

Answer:

The holding period monthly return for Apple in August is <u>-2.00%</u>.

Explanation:

Holding period return (HPR) refers to total return that is received by an investor when he holds an asset or portfolio of assets over a period of time.

The holding period return is generally expressed as a percentage can be estimated using the following formula:

HPR = [Income + (P1 - Po)] / Po ....................... (1)

Where;

Income = Dividend = $0.52

P1 = End-of-period value = $110.30

Po = Initial value = $112.92

Substituting the values into equation (1), we have:

HPR = [$0.52 + ($110.30 - $112.92)] / $112.92

HPR = [$0.52 - $2.62] / $112.92

HPR = -$2.10 / $112.92

HPR = -0.02, or -2.00%

Therefore, the holding period monthly return for Apple in August is <u>-2.00%</u>.

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Economic growth will reduce the future real GDP of an economy. expand the production possibilities of an economy. increase an ec
nikklg [1K]

Answer:

The correct option is B. expand the production possibilities of an economy.

Explanation:

Economic growth can be defined as the increase in an economy's production of economic goods and services, often compared from one period of time to another. It can be measured in any of the following:

  • Nominal or real (adjusted for inflation) terms.
  • Gross National Product (GNP)
  • Gross Domestic Product (GDP), etc.

Contributors to economic growth include:

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In simplest terms therefore, economic growth is used to refer to an increase in the aggregate production in an economy.

5 0
3 years ago
Ryan bought a stock three years ago for $6 a share. Today, June 22, the stock is selling for $72 a share. Ryan is afraid that th
dem82 [27]

Answer:

B) Ryan's stock was sold for $9 a share causing him to lose most of his profits.

Explanation:

Stop loss order means the limit the loss to the extent investor has opted. Since Ryan placed a stop loss order at $70, so, when the price of the stock starts at $9, the stock would be sold at $9 because it is the next available price to what he placed a stop loss order.

So, the Answer is Ryan stock is sold for $9 a share causing him to lose most of his profits.

6 0
3 years ago
Problem 4-4 Calculation of Gain or Loss (LO 4.3) Jocasta owns an apartment complex that she purchased 6 years ago for $750,000.
NemiM [27]

Answer:

$671,300

Explanation:

The calculation of adjusted basis in the building is shown below:-

Adjusted basis = Original cost of the property + Cost of capital improvements - Depreciation claimed

= $750,000 + $50,000 - $128,700

= $800,000 - $128,700

= $671,300

Therefore for computing the adjusted basis we simply add original cost of the property with cost of capital improvements and deduct depreciation claimed.

5 0
3 years ago
Warephase Corporation has preferred stock outstanding. The stock has a 16% dividend rate. The stockâs market price is $80 per sh
alina1380 [7]

Answer:

The cost of the company’s preferred stock financing is 15.7%

Explanation:

In this question, we are asked to calculate a company’s cost of preferred stock financing.

Firstly, we calculate the annual dividend of the company.

Mathematically, that is equal to dividend rate * par value

From the question, dividend rate is 16% while par value is $75

Thus, Annual dividend is 16/100 * 75 = $12

To get the cost of preferred stock, we employ a mathematical approach.

Mathematically, cost of preferred stock = Annual dividend/(current price - floatation cost)

From the question, current price is $80 while the floatation cost is $3.5 per share.

Cost of preferred stock = 12/(80-3.5)

= 12/76.5 = 0.157

This is same as 15.7%

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3 years ago
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