Answer:
$2,000
Explanation:
Ms. Pear invested $12,000 in 1,000 shares of YZ Corporation. After the dividends she received and the stock split, she ended with 2,400 shares. Since she sold 400 shares, it represents 16.67% of her total shares (= 400 / 2,400). To determine the basis for the 400 shares she sold all we need to do is multiply 16.67% x $12,000 (initial investment) = $2,000
Answer:
Friendly Fashions:
Ratios Calculations in 2018:
1) Return on Equity = Net Income divided by Equity x 100
Return on Equity = $170/$1,780 x 100 = 9%
2) Return on the market value of equity = share price/average shares outstanding = $8/710 x 100 = 1.12%
3) Earnings per share = Net Income divided by average shares outstanding = $170/710 = $0.24
4) Price-earnings ratio = Market value per share/Earnings per share = $8/$0.24 = $33.3
Explanation:
1) Return on Equity: The return on equity is a measure of the financial performance of an entity, which evaluates the effectiveness of management in using assets to create profits.
2) Return on the market value of equity: This measures the profit yield on the stock market capitalization. It measures the intrinsic value of a stock by comparing the share price to the number of shares outstanding. It is also called the market capitalization.
3) Earnings per share: This is a measure of a company's profitability. It can be used as an indicator to pick stock to buy. To determine the net income used for this calculation, it is necessary to deduct the dividend of preferred stock, where it exists, before arriving at the net income.
4) Price-earnings ratio: This company valuation method measures the share price relative to the earnings. It is also called the price multiple and earnings multiple. It shows how much an investor can pay in dollars in order to earn a dollar of earnings. It also indicates if a stock is overvalued or undervalued.
Explanation:
The computation of the future value is shown below:
As we know that
Future value = Present value × (1 + interest rate)^number of years
In the first case,
Future value = $2,050 × (1 + 0.12)^12
= $2,050 × 3.895975993
= $7,986.75
In the second case,
Future value = $8,352 × (1 + 0.10)^6
= $8,352 × 1.771561
= $14,796.08
In the third case,
Future value = $72,355× (1 + 0.11)^13
= $72,355 × 3.883280163
= $280,974.74
In the fourth case,
Future value = $179,796 × (1 + 0.07)^7
= $179,796 × 1.605781476
= $288,713.09
Answer:
5.75%
Explanation:
the required rate of return for a preferred stock can be calculated by dividing the preferred dividend by the current market price:
- required rate of return = $5.35 / $93 = 5.75%
The preferred dividend is fixed, but the market price varies depending on the required rate of return.
The following would be the correct answers in order to match the correct strategy to the risk:
1 - Disability Insurance - A Disability
2. Read all contract before you sign - C Scams
3. Warranty - E Product Failure
4. Homeowner’s Insurance - B An expensive repair to the roof of your house
5. Do not give out personal information - D Identity Theft
