Answer:
The 1-year HPR for the second stock is <u>12.84</u>%. The stock that will provide the better annualized holding period return is <u>Stock 1</u>.
Explanation:
<u>For First stock </u>
Total dividend from first stock = Dividend per share * Number quarters = $0.32 * 2 = $0.64
HPR of first stock = (Total dividend from first stock + (Selling price after six months - Initial selling price per share)) / Initial selling price = ($0.64 + ($31.72 - $27.85)) / $27.85 = 0.1619, or 16.19%
Annualized holding period return of first stock = HPR of first stock * Number 6 months in a year = 16.19% * 2 = 32.38%
<u>For Second stock </u>
Total dividend from second stock = Dividend per share * Number quarters = $0.67 * 4 = $2.68
Since you expect to sell the stock in one year, we have:
Annualized holding period return of second stock = The 1-year HPR for the second stock = (Total dividend from second stock + (Selling price after six months - Initial selling price per share)) / Initial selling price = ($2.68+ ($36.79 - $34.98)) / $34.98 = 0.1284, or 12.84%
Since the Annualized holding period return of first stock of 32.38% is higher than the Annualized holding period return of second stock of 12.84%. the first stock will provide the better annualized holding period return.
The 1-year HPR for the second stock is <u>12.84</u>%. The stock that will provide the better annualized holding period return is <u>Stock 1</u>.
Answer:
The price she sold the bond is $1,001.47
Explanation:
The formula for yield return in given as ;
Yield to maturity= (Annual interest+ per value - market price ÷ numbers of years to maturity)/per value+ market price÷ 2
048 = (Selling price + [(.07 × $1,000)/2] - $989)/$989
Making selling price the subject of formula we have this as the abswer
Selling price = $1,001.47
Answer:
Anita uses <em>Consumer Price Index (CPI) </em>as the term to describe the change in the price level from year one to year two.
Explanation:
<em>Since Inflation is measured as the rate of change of those prices from 9% in year 1 to 5% in year 2. The most well-known indicator of inflation is the</em> <em>Consumer Price Index (CPI), which measures the percentage change in the price of a basket of goods and services consumed by households.</em>
<em>Therefore, the Consumer Price Index (CPI) is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care. It is calculated by taking price changes for each item in the predetermined basket of goods and averaging them</em>
Answer:
Cost variance= 7 unfavorable
Explanation:
Giving the following information:
Each bat requires 1 kg of aluminum at $18 per kg and 0.25 direct labor hours at $20 per hour. Overhead is assigned at the rate of $40 per direct labor hour. Assume the actual cost to manufacture one metal bat was $40.
Estimated cost= 18 + 0.25*20 + 0.25*40= 33
Actual cost= 40
Cost variance= 7 unfavorable
Answer:
$2,100
Explanation:
Particulars Fair market value Basis Differences
Inventory $60,000 $30,000 $30,000
Account receivables $40,000 $40,000 $0
Equipment $60,000 $80,000 <u> ($20,000)</u>
Taxable gain $10,000
Tax rate <u> 21% </u>
Built in gains tax <u>$2,100 </u>
So therefore, the built-in-gains tax that Clampett (Incorporated) will pay in 2021 is $2,100.
