Law is a practical discipline: theory has no place in law . With specific references of the Law of Contract , discuss

You bought a stock one year ago for $ 50.00 per share and sold it today for $ 55.00 per share. It paid a $ 1.00 per share divide

fomenos

Answer:

a. 12%

b. 2% and 10%

Explanation:

a. The computation of the realized return is shown below:

= {(Ending share price - initial price) + Dividend} ÷ (Initial price) × 100

= {$1 + ($55 - $50)} ÷ $50

= 12%

b. The computation of the dividend yield and the capital gain is shown below:

Dividend yield

= (Dividend) ÷ (initial price) × 100

= $1 ÷ $50 × 100

= 2%

For capital gain yield:

= (Ending share price - initial price) ÷ (Initial price) × 100

= ($55 - $50) ÷ ($50) × 100

= $5 ÷ $50 × 100

= 10%

6 0

4 years ago

Given the returns for two stocks with the following information, calculate the correlation coefficient of the returns for the tw

julsineya [31]

Answer:

The correlation coefficient of the returns for the two stocks is 0.231

Explanation:

From the question given, we apply the method called co variance

Co variance is referred to as when the co-movement of variables are measured.

The co variance is defined as:

ρ₁,₂=Cov₁,₂/σ₁ x σ₂

The Expected return of stock 1 μ1= 0.4 x 9+0.5 x 11+0.1 x 17=10.8%

The Expected return of stock 1 μ2=0.4 x 11+0.5 x 8+0.1 x 13=9.7%

The Variance of stock 1 σ²₁ is:

1 σ²₁=0.092 x 0.4+0.112 x 0.5+0.172 x 0.1−0.1082σ12=0.092 x 0.4+0.112 x 0.5+0.172 x 0.1−0.1082

=0.012180-0.011664 =0.000516

The standard deviation of stock 1 σ₁ =2√0.0005162 =0.022716 =2.2716%

Thus,

The Variance of stock 2 σ²₂ is:

2 σ²₂= 0.112 x 0.4+0.082 x 0.5+0.132 x 0.1−0.09722 =0.009730-0.009409=0.000321

The standard deviation of stock 2 σ₂ =2√0.000321 =0.017916=1.792%

Cov₁,₂=0.4 x (0.09−0.108)x (0.11−0.097)+0.5 x(0.11−0.108)x(0.08−0.097)+0.1 x(0.17−0.108)x(0.13 8)x(0.13−0.097) =-0.000094-0.000017+0.000205 =0.000094

Therefore,

ρ₁,₂=0.000094/((0.017916)x(0.022716)) =0.231

3 0

3 years ago

A monopolist’s cost function yields constant average and marginal costs, with AC = MC = 5. The firm faces a market demand curve

Nitella [24]

Answer:

a. Marginal Revenue = 5

b. Maximum profit = $144

c. Q optimum = 12 ; P optimum = $17

d. Social cost = $72

Explanation:

Step 1. Given information.

MC=AC=5

P=29-Q

Step 2. Formulas needed to solve the exercise.

Total Revenue=TR=P*Q=(29-Q)*Q=29Q-Q2

Marginal Revenue=dTR/dQ=29-2Q

Step 3. Calculation.

Set MR=MC for profit maximization

29-2Q=5

2Q=29-5

Q=12 -----profit maximizing output

P=29-Q=29-12=$17 -------profit maximizing price

Total Profit=(P-AC)*Q=(17-5)*12=$144 ------Maximum Profit

Lerner's Index=(P-MC)/P=(17-5)/17=0.7059

<h2></h2><h2>TAKE A LOOK TO THE ATTACHED IMAGE</h2>

Profit is shown by rectangular shaded area.

Socially optimal price P=MC=$5 --------Socially optimal price

We know P=29-Q, Set P=5

5=29-Q

Q=24 ---------Socially optimal output

Social Cost is equal to dead weight loss. It is shown by triangular area DWL

Social Cost=1/2*(17-5)*(24-12) =$72

5 0

3 years ago

Judy knows it is important to approach business buyers at the right time, which is often during the first stage of their buying

Elena L [17]

Judy knows it is important to approach business buyers at the right time, which is often during the first stage of their buying process. she stays in touch with her customers, hoping to find out when they are going through NEED RECOGNITION.

Both the Business to Business and the Business to Consumer buying processes begin with need recognition.

5 0

3 years ago

Sheffield Corp. adopted the dollar-value LIFO method of inventory valuation on December 31, 2019. Its inventory at that date was

Solnce55 [7]

Answer: $1226400

Explanation:

The cost of the ending inventory at December 31, 2020 under dollar-value LIFO will be calculated as:

= $1010000 + [($1287000/106 × 100) - $1010000] × 106/100

= $1010000 + ($1214151.4 - $1010000) × 1.06

= $1010000 + ($204150.94 × 1.06)

= $1010000 + $216400

= $1226400

Therefore, the cost of the ending inventory at December 31, 2020 under dollar-value LIFO is $1226400.

6 0

3 years ago