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ratelena [41]
3 years ago
8

Christina purchased 500 shares of stock at a price of $62.30 a share and sold the shares for $64.25 each. She also received $738

in dividends. If the inflation rate was 3.9 percent, what was her exact real rate of return on this investment?
Business
1 answer:
Blizzard [7]3 years ago
6 0

Answer:

1.54%

Explanation:

Return on the stock is the sum of the appreciation in the price of stock and dividend received from the stock.

First we need to calculate the rate of return

Rate of Return = (Final Price - Initial Price + Dividend) / Initial Price

Rate of Return = ($64.25 - $62.30 + ( $738/500 shares) ) / $62.3

Rate of Return = 0.055 = 5.5%

Use following formula to calculate the real rate of return

1 + Nominal Rate = ( 1 + real rate ) x ( 1 + Inflation rate )

1 + 5.5% = ( 1 + real rate ) x ( 1 + 3.9% )

1.055 = ( 1 + real rate ) x 1.039

1 + real rate = 1.055 / 1.039

1 + real rate = 1.0154

real rate = 1.0154 - 1

real rate = 0.0154 = 1.54%

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timofeeve [1]

Answer:

The stakeholders are ; Customers, shareholders/investors, local community, suppliers, employees, Government, competitors, creditors etc.

Explanation:

Stakeholders are a group of people or individuals within a locality, whose interest is Paramount to the survival of an organization.

There are two types of stakeholders, which are;

Internal stakeholders : These group of people or individuals are part of the organization . eg employees, board of directors, managers. Etc.

External stakeholders: These group of people or individuals are not part of the organization but have interest in its performance. Eg local community, media, consumers, suppliers etc.

There are also primary stakeholders and secondary stakeholders.

Primary stakeholders. I.e those who have financial interest in an organization. Eg creditors, shareholders/investors etc.

Secondary stakeholders. i.e those who do not have financial interest but whose decision is influential. Eg trade union, government body etc.

As in the scenario above, impact of shell on several stakeholders are enumerated below;

-Employees: There must be job security for employees, clean and safe working environment and there must be regular source of income with which salaries will be paid.

-Shareholders/Investors:They expect maximum returns on their investment in form of dividends. They also expected to be given preferential treatment in terms of lower prices and little or no value lost on their investment.

-Customer: They expect that products to be sold are reliable and safe for consumption and at fair prices.

-Suppliers: Price of product supplied should be agreed by parties involved. Suppliers also expect regular and frequent orders from them.

-local community: These people expect steady employment for their children, provision of social amenities like tarred roads, community hall, cinema hall etc and avoidance of noise and environmental pollution.

-Competitors: There should be healthy rivalry among producers of similar products and all element of demarketing should be avoided.

-Government ; Government expect from shell constant and regular payments of taxes, compliance with local laws and provision of corporate social responsibilities to the host community.

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4 0
2 years ago
;-; What does this mean ;-;
Scorpion4ik [409]
What does anything mean⇔
5 0
3 years ago
Read 2 more answers
Blanchard Company manufactures a single product that sells for $ 180 per unit and whose total variable costs are $ 126 per unit
Nuetrik [128]

Answer:

Part 1

<u>Income Statement at 15,600 units</u>

Sales ($ 180 x 15,600)                                     $2,808,000

Less Variable Costs ($126 x 15,600)             ($1,965,600)

Contribution                                                        $842,400

Less Fixed Costs                                               ($842,400)

Net Income                                                                    $0

Part 2

$3,278,000

Explanation:

Break even (units) = Fixed Cost ÷ Contribution per unit

                               = $ 842,400 ÷ ($ 180 - $126)

                               = 15,600 units

<u>Assume the company's fixed costs increase by $ 141.000</u>

Break even (units) = Fixed Cost ÷ Contribution per unit

                               = ($ 842,400 + $ 141.000) ÷ ($ 180 - $126)

                               = 18,212 units

Break even Revenue = 18,212 x  $ 180 =  $3,278,000

6 0
2 years ago
(1.1: Modeling) Before paying employee bonuses and state and federal taxes, a company earns profits of $103,000. The company pay
yan [13]

Answer:

Amount paid in;

Bonuses to employees = $5,150

State tax = $5,150

Federal tax = $41,200

Explanation:

The bonus paid to employees, federal tax and state tax are all a percentage of the profit made by the company.

The amount of each of these elements may be computed by applying the applicable percentage on the profit made by the company before any of these deductions.

amounts paid in;

bonuses =  5% * $103,000

= $5,150

state tax  =  5% * $103,000

= $5,150

and

federal tax =  40% * $103,000

= $41,200

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2 years ago
Which of the following is true of public goods? Question 9 options: a) The market mechanism helps to signal the quantity that is
murzikaleks [220]

Answer:

c

Explanation:

A public good is a good that is non excludable and non rivalrous.

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3 0
2 years ago
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