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3 years ago

The rate at which a stock's price is expected to appreciate (or depreciate) is called the _____ yield.

Business

1 answer:

sineoko [7]3 years ago

4 0

Answer:

Capital gains yield

Explanation:

Generally, a capital gains refer to the profit made from selling a capital asset like bond, real estate or stock when the selling price is greater than the price at which the asset was purchased.

Specifically, capital gains yield can be then be described as the appreciation (depreciation) of the price of an investment expressed in percentage terms.

Capital gains yield can be calculated as the difference between the selling price and purchase price of an investment divided by its purchase price and the result is multiplied by 100. This can be mathematically expressed as follows:

Capital gains yield = [(Investment selling price - Investment purchase price) / Investment purchase price] * 100

Therefore, the rate at which a stock's price is expected to appreciate (or depreciate) is called the <u>Capital gains yield</u>.

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Laurel, Inc., and Hardy Corp. both have 6 percent coupon bonds outstanding, with semiannual interest payments, and both are curr

stealth61 [152]

Answer:

A. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of these bonds?

Laurel, Inc. = -8.11%

Hardy Corp. = -18.91%

B. If interest rates were to suddenly fall by 2 percent instead, what would the percentage change in the price of these bonds be then?

Laurel, Inc. = +8.98%

Hardy Corp. = +25.49%

Explanation:

bonds with 6% semiannual coupons, sold at par $1,000

Laurel, Inc. bond maturity in 5 years

Hardy Corp. bond maturity in 18 years

the current price of a bond is the sum of the present value of its face value and coupons. I will use an annuity table to calculate PV of face value and an ordinary annuity table for the coupons:

Laurel, Inc.

market rate 4% = ($1,000 x 0.8203) + ($30 x 8.9826) = $820.30 + $269.48 = $1,089.78, % change = 89.78/1,000 = 8.98%

market rate 8% = ($1,000 x 0.6756) + ($30 x 8.1109) = $675.60 + $243.33 = $918.93, % change = -81.07/1,000 = -8.11%

Hardy Corp.

market rate 4% = ($1,000 x 0.4902) + ($30 x 25.489) = $490.20 + $764.67 = $1,254.87, % change = 254.87/1,000 = 25.49%

market rate 8% = ($1,000 x 0.2437) + ($30 x 18.908) = $243.70 + $567.24 = $810.94, % change = -189.06/1,000 = -18.91%

3 0

3 years ago

Joe's company is looking to make a number of improvements. The firm would like to maximize potential volume and reserved instanc

scoray [572]

The service or tool that could be used for gaining the benefits should be AWS Orgs.

The information related to AWS Orgs is as follows:

AWS Organization should be an account management service.
In this, there are multiple AWS accounts that should be consolidated for developing and managing.
As an organization administrator, the accounts should be developed and the existing accounts should be invited for joining the organization.

Therefore we can conclude that the service or tool that could be used for gaining the benefits should be AWS Orgs.

Learn more about discounts here: brainly.com/question/3541148

3 0

3 years ago

When the price level is falling to a negative zone, the economy is experiencing?

Rasek [7]

When the price level is falling to a negative zone, the economy is experiencing deflation, I believe.

4 0

3 years ago

A company had an unadjusted Cost of Goods Sold of $1,690,000. The company closes its underapplied or overapplied overhead to Cos

lakkis [162]

Answer:

"$1,673,750" is the appropriate answer.

Explanation:

The given values in the question are:

Applied overhead,

= $666,250

Actual overhead,

= $650,000

Unadjusted cost,

= $1,690,000

Now,

The overapplied overhead will be:

= $Applied \ overhead-Actual \ overhead$

= $666,250-650,000$

= $16,250$ ($)

hence,

The goods sold's adjusted cost will be:

= $Unadjusted \ cost-Overapplied \ overhead$

= $1,690,000-16,250$

= $1,673,750$ ($)

8 0

3 years ago

On November 1, 2018, Quantum Technology, a geothermal energy supplier, borrowed $16 million cash to fund a geological survey. Th

coldgirl [10]

Answer:

cash 16,000,000 debit

note payable 16,000,000 credit

-- to record issuance of the note--

interest expense 240,000 debit

interest payable 240,000 credit

--to record december 31th adjsuting entry--

note payable 16,000,000 debit

interest expense 1,200,000 debit

interest payable 240,000 debit

Cash 17,440,000 credit

-- to record honor of the note --

Explanation:

Timeline

<--//---------------//-------------------------//-->

Issuance adjusting entry maturity

Issuance: the note enter the accounting at his face value along with the cash received.

adjusting entry at year-end

the company recognize the accued interest expense for 2 complete months (Nov 1st to Dec 31th)

16,000,000 x .12 x 2/12 = 240,000

at maturity Quantum Technology pays the principal and interest:

16,000,000 x .12 x 9/12 = 1,440,000

but a portion of this interest are accrued already an recognize as a payable so we write-them off.

5 0

3 years ago