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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 Capital gains yield.

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3 years ago

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4 years ago

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The following information pertains to Sooner Company's cash balance and bank reconciliation as of August 31: Company balance bef

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3 years ago

Metropolis National Bank is holding 2% of its deposits as excess reserves. Assume that no banks in the economy want to maintain

iris [78.8K]

Answer:

Increase in money supply = $200,000

Explanation:

Note: The given question is incomplete, missing part is as follow:

Metropolis National Bank

Balance sheet

Assets Liabilities

Reserves $60,000 Deposits $500,000

Loans $440,000

Computation:

Excess reserve hold = 2% × Deposits

Excess reserve hold = 2% × $500,000

Excess reserve hold = $10,000

Required reserve = Reserves - Excess reserve hold

Required reserve = $60,000 - $10,000

Required reserve = $50,000

So,

Required reserve ratio = [$50,000 / $500,000]100 = 10%

Multiplier(K) = 1 / Required reserve ratio

Multiplier(K) = 1 / 10%

Multiplier(K) = 10

Total Money = Person deposit + Excess reserve hold

Total Money = $10,000 + $10,000

Total Money = $20,000

Increase in money supply = Total Money × Multiplier(K)

Increase in money supply = $20,000 × 10

Increase in money supply = $200,000

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