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Mekhanik [1.2K]
3 years ago
7

On its first day of trading, Twitter closed at $41.57 per share. Two years later and the price was $26.85, what was the annual r

eturn on the stock if returns are compounded daily?
A. 21.86%.
B. -21.85%.
C. -5.99%.
D. -19.63%.
Business
1 answer:
Mkey [24]3 years ago
8 0

Answer:

B. -21.85%.

Explanation:

Calculation for the annual return on the stock

First step is to calculate the Number of periods

Number of periods = 2 * 365 days in a year

Number of periods= 730

Second Step is to calculate the Daily return using this formula

Daily return = (Future value / initial value)^1/n - 1

Let plug in the formula

Daily return = (26.85 / 41.57)^1/730 - 1

Daily return = (0.645898)^1/730 - 1

Daily return = 0.999401 - 1

Daily return = -0.00059861*100

Daily return = -0.059861%

Last step is to calculate annual return

Using this formula

Annual return=Daily return/ Numbers of days in a year

Annual return = -0.059861% * 365

Annual return = -21.85%

Therefore the annual return on the stock if returns are compounded daily will be 21.85%

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Answer:

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Explanation:

Budgeted raw material cost per toy car:

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= $1,000 ÷ 100 toy cars

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Flexible budget of raw material:

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Answer:

Effectiveness

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Efficiency has to do with maximal uses of resources available (i.e  input versus output) while effectiveness show whether desirable outcomes have been achieved i.e whether organizational objectives are being achieved.

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Aerotron Electronics is considering the purchase of a water filtration system to assist in circuit board manufacturing. The syst
tino4ka555 [31]

Answer:

Explanation:

Annual worth: this will be the annuity payment equivalent to all the cashflow of the investment. Thus the PMT of the net present value

Cash Investment at F0: <em>230,000/2 = 115,000</em>

present value of 7,500 salvage value:

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity  7,500.00

time   7 years

MARR: 10% = 0.1

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<u>Then, we need to calculate the present value of the loan discounted at 10%</u>

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Principal \: (1+ r)^{time} = Amount

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115000 \: (1+ 0.08)^{2} = Amount

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Now we need to discount this loan at 10% which is our rate of return:

\frac{Maturity}{(1 + rate)^{time} } = PV  

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<em />

Last step, we calculate the PMT of the present worth:

PV \div \frac{1-(1+r)^{-time} }{rate} = C\\

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time 7 years

MARR: 10% = 0.1

222007.51 \div \frac{1-(1+0.1)^{-7} }{0.1} = C\\

C  $ 45,601.564

<em />

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Answer:

The given condition is an example of:

A. Menu costs

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In the given question mentioning data is that

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On his very payday he went outside immediately and bought as many goods as he could for himself as he was going to get his pay today and was needing those items.

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