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Free_Kalibri [48]

2 years ago

9

If a bank benefits when a foreign currency declines in value, then the bank must be in a __________ position. The term below tha

t correctly fills in the blank in the preceding sentence is: Group of answer choices

1 answer:

Rzqust [24]2 years ago

8 0

Short position (I think you were supposed to add answers)

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You purchased shares of stock one year ago at a price of $62.37 per share. During the year, you received dividend payments of $1

andreyandreev [35.5K]

Answer:

real rate of return= 10.93%

Explanation:

The return on equity is the sum of the dividends earned and capital gains made during the holding period of the investment.

Dividend is the proportion of the profit made by a company which is paid to shareholders.

Capital gains is another type of the return made on an equity investment as a result of increase in the value of the shares. It is difference between the cost of the share and the value at the time of disposal.

Therefore, we can can compute the return on the investment as follows:

Capital gain = $69.49- 62.37 = 6.92

Dividend -= 1.77

Nominal return on stock= (1.77 + 6.92)/ 62.37 × 100 = 13.93 %

Inflation is the increase in the price level.It erodes the value of money.rise in the price of money

Nominal interest is that quoted for investment or loan transactions. It has not been been adjusted for inflation.

Real interest rate is the amount of interest in terms of the the quantity of good and services that can be purchased. It is the nominal interest rate adjusted for inflation.

The relationship between inflation, real return and nominal return rate is given using the Fishers Effect;

N = ( (1+R) × (1+F)) - 1

N- nominal rate, R-real rate, F- inflation

real rate of return = (1.1393)/ (1.027)- 1 = 0.1093

real rate of return = 0.1093 × 100 = 10.93%

real rate of return= 10.93%

8 0

2 years ago

Suppose a stock had an initial price of $65 per share, paid a dividend of $1.45 per share during the year, and had an ending sha

DerKrebs [107]

<u>Solution and Explanation:</u>

<u>The total return is as follows: </u>

Total return = (Closing price – opening price + dividend) / opening price

$=(\$ 58-\$ 65+\$ 1.45) / \$ 65$

= -8.54%

Therefore, the total return is -8.54%

b. Dividend yield is as follows;

Dividend yield = Dividend / opening price

= $1.45 divided by $65

= 2.23%

Therefore, the dividend yield is 2.23%

c. the capital gain yield is as follows;

Capital gain yield = (Closing price – opening price) / opening price

$=(\$ 58-\$ 65) / \$ 65$

= -10.77%

7 0

3 years ago

Torque Corporation is expected to pay a dividend of $1.00 in the upcoming year. Dividends are expected to grow at the rate of 6%

dezoksy [38]

Answer:

The answer is " $\$11.62 \ (approx)$ "

Explanation:

Using formula:

$\text{Required return=risk free rate}+\text{beta}\times \text{(market rate-risk free rate)}$

$=5+(13-5) \times 1.2\\\\=14.6\%\\\\\text{Intrinsic value}=\frac{D_1}{\text{(Required return-Growth rate)}}\\\\= \frac{1}{(0.146-0.06)}\\\\= \frac{1}{(0.140)}\\\\=\$11.62\ (Approx)$

7 0

2 years ago

A Plus Appliances sells dishwashers with a fourminusyear warranty. In 2019, sales revenue for dishwashers is $ 88 comma 000. Th

Ierofanga [76]

Answer:

Warranty Expense (Debit) $3,960

Warranty Liability (Credit) $3,960

Explanation:

The principle we apply while making entries for standard warranty is this:

The <u>estimated amount of warranty expense</u>, <em>which a company founds as a percentage of its sales from historical claims and data</em>, is taken as benchmark to accrue the warranty expense in the period when the sale is made <em>(matching principle) .</em>

<em />

In our question, 4.5% is the estimated warranty expense.

The company then sets off the estimated warranty expense (Debit)

(<em>4.5% * $88,000 = $3,960</em>)

with the warranty liability (Credit) to entertain any claims in future.

3 0

3 years ago

All of the following are valid ways to purchase open-end mutual funds except: Multiple Choice A reinvestment plan. A regular acc

amid [387]

An open-end mutual fund cannot be bought from the securities market via a contractual savings plan, as investment is made for a predetermined period during this.

<h3>What are open-end mutual funds?</h3>

Mutual funds, which are open-end, are easily available to be bought by any person who wishes to invest a part of his capital into such asset classes are called open-end mutual funds.

They can be bought voluntarily and have no lock-in periods, and thus are readily available to be bought and sold in the secondary market.

The reason a contractual savings plan cannot be used to buy open-end mutual funds is because such saving plans have lock-ins and are subject to be invested for a fixed period.

Hence, option D; a contractual savings plan cannot be utilized for the purpose of purchasing an open-end mutual fund.

Learn more about open-end mutual funds here:

brainly.com/question/6867027

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7 0

1 year ago