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meriva
2 years ago
15

The current price of the Volkswagen ADR (VWAGY) is 35.50. You purchase 50 shares on margin. You finance half of the purchase you

rself and borrow the other half from your broker at an annual interest rate of 6.0%. Assume that the ADR pays an annual dividend of 0.56 per share. If the price in one year is 42, what is the return on your investment (keep in mind that you need to pay interest on the loan)
Business
1 answer:
Zinaida [17]2 years ago
5 0

Answer:

33.77%

Explanation:

In one year, you are going to receive ($42 x 100) + ($0.56 x 100) = $4,256

you must return ($35.50 x 50) = $1,775

plus interests = $1,775 x 6% = $106.50

total return = $4,256 - $1,775 - $106.50 = $2,374.50

you invested $1,775

return on your investment = ($2,374.50 / $1,775) - 1 = 33.77%

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​Revel Inc., a cell phone manufacturer, decides to launch its new range of smartphones on the company's official Web site so tha
Nikolay [14]

Answer:

The answer is: Place

Explanation:

The four elements of the marketing mix (4 P´s) are:

  • Price
  • Product
  • Place
  • Promotion

Place (or distribution) refers to the point of sale.

Before Amazon, retailers would pay high prices for the right place to set up a store, "location, location, location" was everything. But internet sales shattered that scheme, just ask Sears or JC Penny about it.

With internet sales you can sell your product anywhere (all around the world) and many times you don´t even need a physical store. All you need are good logistics.

3 0
3 years ago
Below are departmental income statements for a guitar manufacturer. The manufacturer is considering dropping its electric guitar
s2008m [1.1K]

Answer:

Wholesale Guitars

WHOLESALE GUITARS

Departmental Contribution Income Statements

For Year Ended December 31, 2013

                                                       Acoustic       Electric

Sales                                              $ 111,500  $ 105,500

Cost of goods sold                          55,675       66,750

Variable operating expenses         29,480       24,200

Total variable costs                       $85,155     $90,950

Contribution margin                   $26,345      $14,550

Total fixed (indirect) costs            $17,225       $14,750

Net operating income (loss)          $9,120          $(200)

Explanation:

a) Data and Calculations:

WHOLESALE GUITARS

Departmental Income Statements

For Year Ended December 31, 2013

                                                       Acoustic       Electric

Sales                                              $ 111,500  $ 105,500

Cost of goods sold                          55,675       66,750

Gross profit                                     55,825        38,750

Operating expenses

Advertising expense                        8,075         6,250

Depreciation expense-equipment 10,150         9,000

Salaries expense                            17,300        13,500

Supplies expense                           2,030           1,700

Rent expense                                  6,105          5,950

Utilities expense                             3,045         2,550

Total operating expenses            46,705       38,950

Net income (loss)                         $ 9,120        $ (200 )

Total operating expenses            46,705       38,950

Less fixed costs:

Advertising expense                      8,075         6,250  

Rent expense                                 6,105         5,950

Utilities expense                            3,045         2,550

Total fixed (indirect) costs         $17,225      $14,750

Variable operating expenses   $29,480    $24,200

3 0
2 years ago
Carla's business recently suffered an attack that shut down operations. What planning document describes how her business should
Kruka [31]

Answer:

A business continuity document

Explanation:

A business continuity plan document helps protect a business from the impact of potential crises that may affect their operations.

It is very important for small businesses to have this written document.

Carla's business continuity plan document should detail:

1. the key business functions needed to get operating as quickly as possible and the resources needed to do so if there's an attack.

2. identify potential crises that might affect the business and also determine how to minimise the risks of these disasters occurring.

Since training has been given to staffs before about their responsibilities in an emergency situation, they should apply what they've learnt.

For example, if there's a possibility for an attack that may affect power supply, Carla should put a back-up generator in place, in the event of a failure.

5 0
2 years ago
Which one of the statements below is true? Deposits in transit are deducted from the balance per the bank statement, and outstan
NARA [144]

Answer:

Option D. The deposits in transit are added to the balance per the bank statement, and outstanding checks are deducted from the balance per the bank statement during the bank reconciliation process.

Explanation:

The reason is that the bank balance as per business books are kept updated according to their knowledge of the transaction verified and bank keeps its business books updated according to its knowledge of the verified transactions.

When the customer presents the check to the business, the business increases its bank balance as per its books and at this point the bank doesn't know whether there is any monetary transaction actually taken place or not. So the bank hasn't altered the business bank balance in their books of accounts. This means the bank is overstated by the deposit in transit and for reconciliation sake we will have to add it to balance as per bank to tally it with the balance as per the business.

Similarly the Outstanding checks which is also known as unpresented checks are the money not yet withdrawn from the business bank account but is actually deducted from the bank balance as per the business books because the payments that the business makes actually records it. This means that the bank balance as per business books are lower than the balance as per the bank and for reconciliation sake we will have to deduct it from the balance as per bank to tally it with the balance as per the business.

5 0
3 years ago
Read 2 more answers
Darden Corporation uses the weighted-average method in its process costing system. The first processing department, the Welding
MrRa [10]

Answer:

$ 8.686

Explanation: the solution is shown in the attached picture

3 0
3 years ago
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