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vekshin1
3 years ago
12

A customer buys 100 shares of DEFF stock at $150 per share. During the first year of owning the stock, the customer receives $45

0 of dividends. At the end of the year the stock is trading at $161.25. Assuming that the customer does not sell the shares, what is the customer's Total return on investment for the holding period
Business
1 answer:
Vlad [161]3 years ago
4 0

Answer:

The total return on investment for the holding period is 10.5%.

Explanation:

If the consumer bought 100 shares for a value of $ 150, obtaining after a year $ 450 total for dividends and seeing his shares go to a value of $ 161.25, to obtain the total return on investment we must perform the following calculations:

On the one hand, we have a return of $ 450 in dividends, which were paid by the total set of 100 shares, with which each share paid $ 4.50 in that concept.

In addition, we have the increase in the value of the shares, which went from $ 150 to $ 161.25, that is, an increase of $ 11.25 per share, which multiplied by the total of 100 shares gives a total sum of $ 1,125.

Thus, adding the dividends to the improvement in the value of the shares, we have a total profit of $ 1,575. Now, to determine the percentage of return that said sum represents, we must perform a cross multiplication:

15,000 = 100

1,575 = X

(1,575 x 100) / 15,000 = X

10.5 = X

So, the rate of return on this investment is 10.5% of the starting value.

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Universal Exports is expected to pay the following dividends over the next four years: $8, $4, $2, and $2. Afterwards the compan
tester [92]

Answer:

Maximum price to be paid for the stock = $12.43

Explanation:

The Dividend Valuation Model is a technique used to value the worth of an asset. According to this model, the worth of an asset is the sum of the present values of its future cash flows discounted at the required rate of return.

<em>Hence the value of the stock would be the present value of its future dividend discounted at 15%</em>

Year                                   PV of dividend

1                                          8  ×1.15^(-1)  

2                                           4 ×  1.15^(-2)  

3.                                              2 × 1.15^(-3)    

4                                                  2 × 1.15^(-4)    

PV of dividend =   (8 ×1.15^-1) +  (4 × 1.15^-2)  + (2 × 1.15^ -3) + (2× 1.15^-4) = 12.439

Maximum price to be paid for the stock = $12.43

4 0
3 years ago
Indicate whether each of the following transactions represents an increase in net exports, a decrease in net exports, an increas
iris [78.8K]

Answer:

(a). A worker at a Sony plant in Japan buys some Georgia peaches from an American farmer.

-<u> Increase in exports while no change in imports</u>.

(b). The Sony pension fund buys a bond from the U.S. Treasury.

- <u>Decrease in a net outflow of capital. Thus, it would be considered as a negative inflow/outflow</u>.

(c). An American investor buys a controlling share in a South Korean electronics firm.

- <u>Increase in Net Capital outflow for the U.S</u>.

Explanation:

Exports are described as the selling of domestic goods to a foreign country while Imports are characterized as the process of bringing in foreign goods to the domestic country. And Capital outflow is defined as the exact flow of funds from domestic to foreign and foreign to the domestic country.

In the first case, the purchase reflects a rise in exports as the domestic product is sold to the foreign country. In the second situation, the net outflow of the capital would decreases as it demonstrates a foreign purchase of a domestic asset. In the third example, the American investors' purchase of a South Korean firm demonstrates a domestic purchase of a foreign asset and thus, the net capital outflow would rise.

7 0
3 years ago
Which document establishes an initial record of the receipt of the inventory?​?
MrRa [10]
The document which establishes an initial record of the receipt of an inventory is THE RECEIVING REPORT.
The receiving report is usually used by a business to record the details of the products that are received from suppliers. The record documents what is owned to supplier based on the number of goods accepted and the ones that are returned.<span />
7 0
3 years ago
Sean​ quimby, vice president of human resources at​ zipcar, says the company is looking for applicants who embody the value of​
Cloud [144]
I believe this is an example of: <span>nondirective Interview.
A nondirective interview refers to the type of interview that would provide some sort of reward to the applicants if they take initiative to lead the conversation in the interview.
This type of interview often used by employers who do not possess a strict standard on professional interviewing.</span>
5 0
3 years ago
Westside Plumbing and Heating Company is offered a contract for$100,000 to provide plumbing for a new building. The labor and eq
Reika [66]

Answer:

Westside Plumbing and Heating Company

Westside should accept the contract.

By accepting the contract at the price of $100,000, Westside incurs a total cost of $97,500 and makes a little profit of $2,500 ($100,000 - $97,500).  The contract enables Westside to utilize the materials that it has in inventory instead of allowing it to deteriorate further in value.

Explanation:

a) Data and Calculations:

Contract price = $100,000

Labor and equipment costs = $60,000

Original cost of materials = $50,000

Materials market price = $37,500

Total costs to be incurred = $97,500 ($60,000 + $37,500)

Profit to be earned = $2,500 ($100,000 - $97,500)

4 0
2 years ago
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