Answer:
Return on investment=12.81%
Explanation:
<em>Return on investment for a stock comprises of the capitals and dividend earned on the stock.</em>
<em>The capital gain is the difference between he cost of the shares when it was bought and the value when it is sold.</em>
Capital gain = (24.50 -22)× 500= 1250
Dividend earned for a year = 0.32× 500 =160
Total return = 1250 + 160 =1,410
Total return = $1,410
Cost of the shares= 11,000
Return on investment = total return/cost of shares× 100
=1,410
/11,000 × 100= 12.81
Return on investment=12.81%
Answer:
a. 14.75%
b. Under priced
Explanation:
The computation for the required rate of return is shown below:
a. Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
= 6% + 1.25 × (13% - 6%)
= 6% + 1.25 × 7%
= 6% + 8.75%
= 14.75%
b. As the required rate of return comes 14.75% and the required return is 16% so it is under priced as expected return is more than the required return
Answer: $1,200,000
Explanation:
The firm should include $1,200,000 as the cost of the Manufacturing facility for a new project in it's analysis.
This is because $1,200,000 is the opportunity cost of not selling the facility. The old costs that were incurred for the land and the facility are to be considered sunk costs as they have already been incurred and the only relevant cost now is what the market will pay for the facility which is $1,200,000.
Answer:
Correct option is A
“The flow of dollars between sellers of jewelry and clothing and buyers of jewelry and clothing” is the correct option
Explanation
It is a curve which shows various combination for the amount of two goods among which they can be produced with in the given available resources. Thus, it shows that the maximum amount of output is produced with the help of given resource.
