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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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In the classroom and in the grocery store and house.

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3 years ago
What are the required components of a database function? Check all that apply.
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3 years ago
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Two firms decide whether to launch a new product: (i) If both firms choose to launch a new product, then each firm will receive
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Answer:

don't launch

Explanation:

Game theory looks at the interactions between participants in a competitive game and calculates the best choice for the player.

Dominant strategy is the best option for a player regardless of what the other player is playing.

Nash equilibrium is the best outcome for players where no player has an incentive to change their decisions.

The payoff matrix for this question is

                                     Launch (in millions)               Don't Launch  (in millions)  

Launch (in millions)                  $40, $40                      $30, $45

Don't Launch (in millions)         $45, $30                      $50, $50

It can be seen that the best strategy for each firm is not to launch because the payoffs of not launching ($45, $50) is greater than the payoff  of launching ($40, $30)

4 0
2 years ago
Suppose White Company manufactures chairs. One model is the executive chair that sells for $220. White Company projects sales of
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Answer:

$55,000

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we must determine the total budgeted manufacturing cost per unit = direct materials per chair x direct labor per chair + variable manufacturing overhead cost per chair = $60 + $30 + $20 = $110 per unit

total budgeted sales = 500 units sold in January

budgeted cots of goods sold = 500 units x $110 per unit = $55,000

3 0
3 years ago
A website that shows you a selection of athletic shoes based on your previous views of other shoes is using Blank______ to be re
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If website that shows you a selection of athletic shoes based on your previous views of other shoes is using <u>personalization.</u>

<h3>What is personalization?</h3>

Personalization can be defined as the process of knowing a person preferences so as to meet their need.

Most online companies tend to make use of  personalization to know your preference based on the last thing you bought or based on your previous view by advertising or marketing similar products to you so as to meet your personal needs.

Inconclusion If website that shows you a selection of athletic shoes based on your previous views of other shoes is using <u>personalization.</u>

Learn more about Personalization here:brainly.com/question/1286522

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1 year ago
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