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Advocard [28]
2 years ago
10

Suppose a stock had an initial price of $57 per share, paid a dividend of $1.1 per share during the year, and had an ending shar

e price of $63. Compute the percentage total return.
Business
1 answer:
kolbaska11 [484]2 years ago
6 0

Answer:

12.46%

Explanation:

Data provided

Dividend income = $1.1

Ending share per price = $63

Initial price = $57

The computation of the percentage total return is shown below:-

Total return = (Dividend income + (Ending share per price - Initial price)) ÷ Initial price

= ($1.1 + ($63 - $57)) ÷ 57

= ($1.1 + $6) ÷ 57

= $7.1 ÷ 57

= 0.12456

or 12.46%

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What is the recovery period and depreciation method of a residential rental property located in a foreign country which was plac
snow_lady [41]

Answer: For residential rental property, the recovery period using GDS is 27.5 years. 2 If you use ADS, the recovery period for the same type of property is 30 years if it was placed in service after December 31, 2017, or 40 years if it was placed in service before that date.

Explanation: Is the good enough???

7 0
2 years ago
Many former employees at AlphaEnergy, an energy trading and supply company, had a large
Virty [35]

Answer:

Letter A is correct.<u> </u><em><u>Unsystematic</u></em><em> </em>risk.

Explanation:

Unlike systematic risk, which is an inherent market risk, unsystematic risk is inherent in a specific sector or company.

The case in point concerns the investment of former AlphaEnergy employees, which is a unsystematic risk, as the investment risk in single-company shares includes regulatory changes, management changes, loss of market due to competition and withdrawal of the product from the market.

To reduce this type of risk, investors should seek diversification in their stock portfolio.

7 0
3 years ago
For effective price discrimination to occur, a seller must:
Bess [88]

Answer:

In order for effective price discrimination to occur, the seller must have a downward sloping demand curve.  

Explanation:

The seller must also have at least two identifiable groups of customers with price elasticities of demand for the product, and the seller must be able to prevent customers from reselling the product.

8 0
3 years ago
"Parker Company stock is currently selling for $130.00 per share and the firm's dividends are expected to grow at 6 percent inde
8_murik_8 [283]

Answer:

Cost of equity = 10.7%

Explanation:

<em>We will work out the required rate of return using the the dividend valuation model. The model states that the value of a stock is the present value of the future divided discounted at the cost of equity. </em>

The model is given below:

P = D× (1+g)/(r-g)

P- price of stock, D- dividend payable now, g- growth rate in dividend, r- cost of equity

So we substitute  

130 = 5.50× (1+r)/(r-0.06)

cross multiplying

(r-0.06)× 130 = 5.50 × (1+r)

130 r- 7.8  = 5.50 + 5.50r

collecting like terms

130 r - 5.50r=5.50 + 7.8

124.5  r= 13.3

Divide both sides by 124.5

r =13.3 /124.5=  0.1068

r=0.1068 × 100=  10.7%

Cost of equity = 10.7%

6 0
2 years ago
Which of the following is a positive economic statement? Group of answer choices The standard of living in the United States sho
Vesna [10]

The U.S. government should not have bailed out U.S. auto manufacturers.

Explanation:

  • After the inflation period during the 1930, which continued almost for the next 30 years, America increased its standard of living - payment of higher taxes. With an income that was to be paid to government and to be used for their living, Americans had a tough time for almost 10 years to come out of the inflation they faced. Recession was also a part of this period during Hoover's presidency.
  • Later, when Roosevelt was elected, his new ideals changed the phase of America which did not let the government stick to basic infrastructure of America. In this period, people of America unanimously agreed for the bailout of auto manufacturers with which, they earned revenue for other sector's development.
  • In 2009, when the contract with General Motors was disintegrated, which was created during the time of World War II, the government of America did not want to take any risk/was not ready to face an economic hit. This eventually led for a bail out.
  • With this step, in that period of time, it is an economically positive statement.
3 0
3 years ago
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