Answer:
Percentage total return is 12.64%
Dividend yield is 2.19% or 2%
Explanation:
Computing the percentage total return by using the formula:
Percentage total return = Gain or loss / Initial price × 100
where
Gain or loss is determined as:
Gain or loss = Ending Share price - Initial price
= $98 - $87
= $11 (it is a gain)
Initial price is $87
Putting the values above:
Percentage total return = $11 / $87 × 100
= 12.64%
Computing the dividend yield by using the formula:
Dividend yield = Annual dividend per share / Stock's price per share
where
Annual dividend per share is $2.15
Stock's price per share is $98
Putting the values above:
Dividend yield = $2.15 / $98
= 2.19% or 2%
Answer:
Option (A) is correct.
Explanation:
Luxury goods refers to the goods which are having positive income elasticity of demand. Positive income elasticity of demand is defined as the direct relationship between the demand of the goods and the income of the consumers.
If there is an increase in the income level of consumers then as a result there is an increase in the demand for luxury goods by a greater proportion. That's why the income elasticity of demand is relatively larger.
<u>Solution and Explanation:</u>
a)
Date Account Head & Description Debit Amount Credit Amount
Land Debit (62 multiply 25000) 1550000
Treasury Stock Credit (53 multiply25000) 1325000
Paid - in Capital from treasury stock Credit
(1550000 minus1325000) 225000
(To record purchase of land)
b) One might use the cost of treasury stock. However, this is not a relevant measure of this economic event. Rather, it is a measure of a prior, unrelated event. The appraised value of the land is a reasonable alternative (if based on appropriate fair value estimation techniques). However, it is an appraisal as opposed to a market-determined price. The trading price of the stock is probably the best measure of fair value in this transaction.
Answer: The production possibilities curve has a negative slope.
Explanation:
Production possibility frontiers shows us the combination of goods that can be produced in a nation using all of its resources. Since, resources are scarce it is only possible to produce more units of one good by producing less of the other. Thus, the slope of the production possibility frontier is negative.
Other options, does not tell us anything about the scarcity of resources.
