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Rama09 [41]
2 years ago
6

Suppose you buy some stock in the Alpha Corporation at a price of $45.95 per share. 410 days later you sell the stock for $48.27

. During this period you received a per share dividend of $1.20. What is your annualized return on this investment
Business
1 answer:
kondaur [170]2 years ago
8 0

Answer: 6.79%

Explanation:

The holding period return is:

= (Current price - Cost price + Dividend) / Cost price

= (48.27 - 45.95 + 1.20) / 45.95

= 7.66%

The annualized return is:

= ( ( 1 + holding period return) ^ number of days in a year/ number of days stock was held - 1)

= ( ( 1 + 7.66%) ³⁶⁵ / ⁴¹⁰ - 1)

= 6.79%

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iren2701 [21]

Answer:

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Explanation:

False, it is given that Sara spends $25 for all-day ticket in the amusement park. However, this is a shuck cost that she can not recover. Moreover, she has taken one ride so marginal analysis shows that all his $25 is not wasted. She has utilized some portion of their money so we can not say that she has wasted all his money.

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How has private enterprise strengthened the united states economy?
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Answer:

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Because businesses cannot outgrow the economy of their communities

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3 years ago
Prompt What is advertising?
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3 0
3 years ago
Read 2 more answers
EB5.
rusak2 [61]

Answer:

1. Break-even in units is 6,000 units

2. Break-even in dollars is $720,000

3. Contribution Income Statement for 10,000 units

Sales revenue (10,000 x 120)    $1,200,000

Variable cost   (10,000 x 90)       <u> (900,000)</u>

Contribution margin                    $300,000

Fixed cost                                     <u> (180,000)</u>

Profit                                              $120,000

4. Units to sell is 16,000

5. Dollars sale is $1,920,000

6. Contribution Income Statement for $2,400,000 sales revenue

Sales revenue (20,000 x 120)    $2,400,000

Variable cost   (120,000 x 90)     <u> (1,800,000)</u>

Contribution margin                       $600,000

Fixed cost                                       <u> (180,000)</u>

Profit                                              $420,000

Explanation:

1. To compute the Break-even point in units,

Formula is BEP = total fixed cost / unit contribution margin

 <em>Step 1. Compute the unit contribution margin</em>

Unit selling price              $120

Less : variable cost             <u> 90</u>

Unit contribution margin   $30

  <em>Step 2. compute the unit break-even in units using the formula.</em>

BEP = total fixed cost / unit contribution margin

BEP = $180,000 / 30

BEP = 6,000 units

2. To compute the Break-even point in dollars,

Formula is BES = total fixed cost / contribution margin ratio

 <em>Step 1. Compute the contribution margin ratio</em>

Unit selling price              $120

Less : variable cost             <u> 90</u>

Unit contribution margin   $30

So, $30 divided by $120 equals 25% (CMR)

  <em>Step 2. compute the unit break-even in dollars using the formula.</em>

BEP = total fixed cost / contribution margin ratio

BEP = $180,000 / 25%

BEP = $720,000

3. To prepare the contribution margin income statement, we will multiply the units sold of 10,000 units by $120 to get the sales revenue. Then multiply 10,000 units by $90 to get the variable cost. Further illustration below;

Sales revenue (10,000 x 120)    $1,200,000

Variable cost   (10,000 x 90)       <u> (900,000)</u>

Contribution margin                    $300,000

Fixed cost                                     <u> (180,000)</u>

Profit                                              $120,000

4. To compute the units to sell to realize the target profit we will use the formula:

(Total fixed cost +  Target profit )/ unit contribution margin

 <em>Step 1. Compute the unit contribution margin</em>

Unit selling price              $120

Less : variable cost             <u> 90</u>

Unit contribution margin   $30

  <em>Step 2. compute the units to sell using the formula.</em>

(Total fixed cost + target profit) / unit contribution margin

($180,000  + $300,000) / 30

Answer is 16,000 units

5. To compute the sales in dollars to realize the target profit of $300,000,

Formula is (Total fixed cost + target profit) / contribution margin ratio

 <em>Step 1. Compute the contribution margin ratio</em>

Unit selling price              $120

Less : variable cost             <u> 90</u>

Unit contribution margin   $30

So, $30 divided by $120 equals 25% (CMR)

  <em>Step 2. compute the target sales in dollars using the formula.</em>

(Total fixed cost + target profit) / contribution margin ratio

($180,000 + $300,000) / 25%

$480,000 / 25%

Answer is $1,920,000

6. Contribution Income Statement for $2,400,000 sales revenue. FIRST we must determine how many unit are sold to have that sales revenue. $2,400,000 sales revenue divided by unit selling price equals 20,000 units. To further illustrate, see presentation below.

$2,400,000 / $120 = 20,000 units

Sales revenue (20,000 x 120)    $2,400,000

Variable cost   (120,000 x 90)     <u> (1,800,000)</u>

Contribution margin                       $600,000

Fixed cost                                       <u> (180,000)</u>

Profit                                              $420,000

4 0
3 years ago
Last year you purchased a new car for $18,500. Today you sold the car for $14,750. If the car's value is measured by what someon
vodka [1.7K]

Answer:

-20.27%

Explanation:

Value = ($14,750 / $18,500) - 1 = -20.27%

5 0
2 years ago
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