1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
The hiring of applicants based on criteria that are not job-related is called:
Cloud [144]
<span>The hiring of applicants based on criteria that are not job-related is called job discrimination. Job discrimination usually happens when a person is judged based on his/her gender, race, nationality, disability, religion or age. His/her relevant skills related to the job are not considered. </span>
6 0
3 years ago
The complement of 35% is:
Lena [83]
<span>100%-35%=65% 

the compliment of 35% is 65%

</span>
6 0
3 years ago
Division A makes a part with the following characteristics: Production capacity in units 34,000 units Selling price to outside c
azamat

Answer:

Division A

If Division A agrees to sell the parts to Division B at $18 per unit, the company as a whole will be:

worse off by $30,000 each period.

Explanation:

a) Data and Calculations:

Production capacity of Division A = 34,000

Selling price per unit to outside customers = $21

Variable cost per unit = $13

Total fixed costs = $105,800

Order from Division B = 10,000

Price that Division B purchases from outside supplier = $18

Selling to Division B instead of selling to outside customers will result in a loss of $3 ($21 - $18) per unit

The total loss = $30,000 ($3 * 10,000)

7 0
3 years ago
The​ short-run aggregate supply curve slopes upward because of all of the following reasons except
ololo11 [35]

Answer:

B) in the short run, an unexpected change in the price of an important resource can change the cost to firms.

Explanation:

The short run aggregate supply (SRAS) curve is upward sloping because as the price of goods and services increases, the quantity supplied will increase. In the short run, wages are more sticky than prices, and businesses can adjust prices more rapidly than employees can get a raise. This will result in businesses increasing their profit margins as the general level of prices increases, therefore the SRAS curve will be upward sloping.

An unexpected change in the price of a key input will shift the entire SRAS curve either to the right (price of key input decreases) or to the left (price of key input increases).

3 0
3 years ago
Read 2 more answers
If a firm accepts less than all of its prospective projects with positive NPVs when evaluated at their own risk-adjusted costs o
gtnhenbr [62]

Answer: True

Explanation:

  Yes, the given statement is true that the employing capital rationing is one of the process in which it placing some restriction on the investment amount of the project in an organization.

 In the capital rationing strategy, if the company accepts less amount from all its prospective projects along with some positive net profit value (NPVs) the it is evaluated on the basis of their own risk.

 The employ capital rationing helps in making various types of decisions related to investment for the company and in this system only limited projects are taken due to the limitation of the resources.  

 Therefore, The given statement is true.

3 0
3 years ago
Other questions:
  • When each asset is analyzed as a percent of total assets for a single period, this is known as A. ratio analysis. B. horizontal
    12·2 answers
  • When interests rates are high it costs less money to borrow money true or false?
    7·2 answers
  • Which best describes what financial planning skills ultimately enable an individual to do
    15·2 answers
  • What is the most important duty of a firm's financial officer? to ensure that the firm has enough cash on hand to meet its commi
    8·1 answer
  • 4) Suppose that when the price of hamburgers increases, the Ruiz family increases their purchases of hot dogs. To the Ruiz famil
    11·1 answer
  • Jenny would like to know whether she has budgeted enough money per month for groceries while she is in college. She takes a repr
    14·1 answer
  • One component of learning about another country or region is to understand the relationship of its currency with others on the w
    10·1 answer
  • Gary, Peter, and Chris own a firm as partners. Gary has a capital balance ofâ $22,000; Peter a capital balance ofâ $42,000; and
    13·1 answer
  • A firm purchased $120,000 worth of light general-purpose trucks. The operations of the trucks lead to annual income of $60,000 f
    13·1 answer
  • When asked a difficult question during an interview, _____.
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!