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
aniked [119]
3 years ago
11

If you buy a share of stock for $15 and sell it two years later for $18.50, what is the annual percent return (on a compounded b

asis) that you received for your investment?
Business
1 answer:
nadya68 [22]3 years ago
7 0

Answer:

11%

Explanation:

Compounding is the method used to determine the future worth of an amount today while discounting is the method used to determine the present value of a future amount.

Both are related by

Fv = Pv(1 + r)^n

where Fv is the future amount

Pv is the present value

r = rate

n = time

As such,

18.5 = 15 (1 + r)^2

1.2333 =  (1 + r)^2

1 + r = 1.11

r = 0.11

the annual percent on returns is 11%

You might be interested in
Which of the following is the most important factor in successful new-product introduction? Group of answer choices ​The new pro
exis [7]

Answer:

The correct answer is letter "B": The new product should deliver a meaningful and perceivable benefit to a sizable number of people.

Explanation:

A new product is a good or service that is going to be introduced to the market to satisfy the need for a specific sector. <em>For the new product to be successful, the need that it satisfies should represent a benefit for the target audience great enough to make them pay for it</em>. Besides, the new good or service must bring a differential feature to consider it more attractive compared to competitors or similar products that might already exist.

6 0
3 years ago
Read 2 more answers
Please help??
kondaur [170]
I think c is the correct answer
3 0
3 years ago
Read 2 more answers
You are considering acquiring a common stock that you would like to hold for one year. You expect to receive both $1.25 in divid
Vlad1618 [11]

Answer:

The maximum that should be paid for the stock today is $30.23.

Explanation:

The total return on a stock is made up of dividend received on the stock plus the capital gain received from selling the stock. The holding period is one year that means a 10% return on the amount invested in required for one year. We need to calculate the present value of the total of selling price plus the dividend to calculate the price of the stock today. As 10% return is required, the discount rate is also 10%.

PV = (1.25 + 32) / 1.1

PV = 30.227 rounded off to 30.23

5 0
3 years ago
Substance use/abuse becomes a form of self-soothing when you feel stress or anxious
docker41 [41]
<span>It is true that substance use can make you feel self-soothing when you feel stress or anxious. When you abuse these substances, it will make you feel dependent on them because of you wanting them every day. This is the reason why abusing substances can harm your body and make you feel uncomfortable without it.</span>
5 0
3 years ago
Mr. Manning is looking to invest in a one-year stock option and has four possible options. The four options have various rates o
ELEN [110]

Answer:

Mr. Manning

a. YHA is the best expected value decision with an expected value of $59,766.

b. HTC is the worst expected value decision.

Explanation:

a) Data and Calculations:

Stock    Market Rising    Market Stable    Market Falling

SUA          $68,082              $47,373              $36,362

YSP           $64,850             $49,320              $44,865

HTC           $57,198             $52,949              $50,605

YHA          $59,766             $59,766              $59,766

Expected Value:

Stock     Market Rising    Market Stable    Market Falling   Expected Value

Probability    60%                   30%                   10%

SUA          $68,082*60%   $47,373*30%    $36,362*10%     =  $58,697

YSP          $64,850*60%   $49,320*30%    $44,865*10%     =     58,163

HTC          $57,198*60%   $52,949*30%    $50,605*10%     =   55,264

YHA         $59,766*60%   $59,766*30%    $59,766*10%     =   59,766

SUA = $40,849.20 + $14,211.90 + $3,636.20 = $58,697.30

YSP = $38,880 + $14,796 + $4,486.50 = $58,162.50

HTC = $34,318.80 + $15,884.70 + $5,060.50 = $55,264

YHA = $35,859.60 + $17,929.80 + $5,976.60 = $59,766

6 0
2 years ago
Other questions:
  • The concept of "benchmarking" is: a. The process of comparing a particular company with a subset of the competitors in the indus
    5·1 answer
  • ordan Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly c
    9·1 answer
  • Weston Corporation just paid a dividend of $1.00 a share (i.e., D0 5 $1.00). The dividend is expected to grow 12% a year for the
    14·1 answer
  • One column of numbers consists of 28, 42, and 14. When the digits of the numbers are added together, the result is 2 + 8 + 4 + 2
    11·1 answer
  • It is legal for a principal real estate broker to place clients' trust funds in an interest-bearing account in Oregon ____(A) Wi
    6·1 answer
  • Rough &amp; Ready Timber Company orally contracts with Shawn for the purchase of five acres of Shawn’s timberland. Shawn makes t
    14·2 answers
  • Dogs and Formals. Paul owns a dog grooming business and needs patient people to work there. He gives all applicants a test he ob
    13·1 answer
  • Most Company has an opportunity to invest in one of two new projects. Project Y requires a $310,000 investment for new machinery
    11·1 answer
  • Can anyone answer this question it important​
    13·2 answers
  • Suppose executives at an art museum know that 100 adults are willing to pay $12 for admission to the museum on a given weekday.
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!