An investor buys shares worth $50 and sells them after one year for $56. During this period, they receive a dividend of $2. What is the total rate of return on this investment? Options: a) 12% b) 16% c) 14% d) 18%
Q: Correct answer please
A: Step 1: Definition of Overhead RateA firm dealing with a single product with low turnover can adopt…
Q: Financial Accounting
A: Step 1: Define Dividend YieldThe Dividend Yield is a financial ratio that shows how much a company…
Q: What is the companys plant-wide overhead rate
A: Explanation of Plantwide Overhead Rate:The plantwide overhead rate is a single predetermined rate…
Q: Don't use ai given answer accounting questions
A: Step 1: Definition of Profit Margin and Asset TurnoverProfit Margin: The profit margin is a…
Q: Financial accounting 2
A: Explanation of Target Stock Price:The target stock price is an estimate of the future value of a…
Q: Please give me true answer this financial accounting question
A: Step 1: Define Dividend Payout RatioThe Dividend Payout Ratio is the proportion of net income a…
Q: Accurate answer
A: Explanation of Manufacturing Overhead Costs: Manufacturing overhead costs represent all…
Q: Financial accoun
A: Step 1: Definition of Depreciation DeductionDepreciation is the process of allocating the cost of a…
Q: Subject accounting
A: Step 1: Original contribution margin The basis is the sales so the sales ratio is 100%Contribution…
Q: What is the percentage return on your investment of this financial accounting question?
A: Step 1: Define Percentage Return on InvestmentThe percentage return on investment (ROI) measures the…
Q: Solve this financial accounting problem
A: Explanation of Balance Sheet Equity: Balance sheet equity, also known as shareholders' equity or net…
Q: General Accounting
A: Step 1: Define Credit SalesCredit sales refer to transactions where a company sells goods or…
Q: I don't need ai answer general accounting question
A: Step 1: Definition of Profit MarginProfit margin is a financial metric that measures the percentage…
Q: Please give me true answer this financial accounting question
A: Step 1: Define Accounts Receivable Days Outstanding (DSO)Days Sales Outstanding (DSO) is a financial…
Q: What was your percent return for this financial accounting question?
A: Step 1: Definition of Percent ReturnPercent return is a measure of the total gain or loss on an…
Q: Do fast answer of this accounting questions
A: Step 1: Analysis of information givenTotal asset turnover = 3.75Net Profit Margin = 15.20%Total…
Q: Solve this problem
A: Concept of Straight-Line DepreciationStraight-line depreciation is a method used to allocate the…
Q: Financial Accounting Question
A: Step 1: Define Yield to Maturity (YTM)Yield to Maturity (YTM) is the total return anticipated on a…
Q: Please give me answer general accounting question
A: Step 1: Definition of Gross MarginGross margin is the difference between net sales and the cost of…
Q: hi expert please help me
A: To calculate the cost per equivalent unit for materials using the FIFO method, we use the following…
Q: The direct materials purchase variance is completed when the materials are purchased
A: Explanation of Direct Materials Price Variance:Direct Materials Price Variance measures the…
Q: The ending inventory under variable costing?
A: Explanation of Variable Costing:Variable costing is a cost accounting method in which only variable…
Q: Recently, Abercrombie & Fitch has been implementing a turnaround strategy since its sales had…
A: Detailed explanation: Journal Entry:Debit: Cost of Goods Sold (COGS) or a separate loss account…
Q: Help
A: Explanation of Operating Activities: Operating activities represent the day-to-day business…
Q: answer plz
A: Here's the corrected calculation:Given data:Net income = $500,000Dividends to common stockholders =…
Q: Income will be?
A: Step 1: Calculate the number of units that can be produced for each product. Product X:Machine hours…
Q: What is their weighted average cost of capital on these financial accounting question?
A: Calculate Denver Medical Solutions' Weighted Average Cost of Capital (WACC): Step1: Calculate the…
Q: Accurate answer
A: Explanation of Owner's Equity: Owner's equity represents the owner's financial stake or net worth in…
Q: Financial accounting
A: Step 1: Define Rate of ReturnRate of Return is the percentage gain or loss on an investment over a…
Q: I want to correct answer general accounting question
A: Step 1: Definition of Degree of Operating Leverage (DOL)The Degree of Operating Leverage (DOL)…
Q: Recently, Abercrombie & Fitch has been implementing a turnaround strategy since its sales had…
A: Detailed explanation:An inventory write-down is a reduction in the recorded value of inventory…
Q: What amount will hocco corporation recorded as the acquisition cost of the land?
A: Explanation of Land Acquisition Cost:Land acquisition cost refers to all the expenses incurred to…
Q: Solve this financial accounting problem
A: Explanation of Equity Multiplier:The equity multiplier is a financial metric that measures a…
Q: Financial Accounting Question need help please
A: Step 1: Definition of Net IncomeNet income represents the total profit a company earns after…
Q: Suppose Loc Motors, Inc. has 720 million shares outstanding with a share price of $65.20, and $30.85…
A: To determine how much debt Loc Motors, Inc. will have in three years while maintaining a constant…
Q: help me to solve this answer
A: Step 1: Introduction to bondsBonds payable refers to a type of long-term debt that a company or…
Q: Suppose Loc Motors, Inc. has 720 million shares outstanding with a share price of $65.20, and $30.85…
A: How to calculate the future debt for Loc Motors, Inc., assuming a constant debt-to-equity ratio:…
Q: Can you help me with accounting questions
A: Step 1: Definition of Return on Assets (ROA)Return on Assets (ROA) measures a company's efficiency…
Q: ans ?? Financial accounting question
A: Step 1: Calculation of gain on saleGain = Sale Price - Book Value Gain= $22,000 - $15,000 Gain =…
Q: Summit Mechanical Co. has a normal capacity of 25,000 direct labor hours. The company's variable…
A: *Total Standard Overhead Costs = Fixed Cost + Variable Cost…
Q: Stock market that day?
A: Now, calculating the return:Return = (97.65/5,227.77) * 100=(0.01868) * 100= 1.87% Therefore, the…
Q: A company can sell all the units it can produce of either Product X or Product Y but not both.…
A: Determine Maximum Contribution MarginSince 6,000 machine hours are available: If Product X is made:…
Q: Financial accounting
A: Step 1: Define Cash CollectionCash collection refers to the inflow of cash received from customers…
Q: answer plz
A: Given Data:Debt-Equity Ratio = 1.42Return on Assets (ROA) = 7.67% = 0.0767 (decimal)Total Equity =…
Q: General Accounting
A: Step 1: Define After-Tax Cost of InterestThe after-tax cost of interest represents the actual…
Q: ANSWER?
A: We are given the following information: Standard direct labor hours per excavator = 25 hoursStandard…
Q: Get correct answer general accounting question
A: Step 1: Definition of Net IncomeNet income represents a company's total earnings after all expenses,…
Q: Zendta Corporation, a firm with no net debt, reports cash flow from operations of $5,120 million in…
A: Given Information:Cash Flow from Operations (CFO) = $5,120 millionAccruals added to Earnings =…
Q: Get correct answer accounting questions
A: Previous closing price = Closing Price - Gain pointsPrevious closing price =…
Q: General Accounting
A: Step 1: Define Total Assets Turnover & Equity MultiplierTotal Assets Turnover measures how…
I need correct option of this question general Accounting
Step by step
Solved in 2 steps
- Suppose you purchase one share of the stock of Red Devil Corporation at the beginning of year 1 for $43.00 At the end of year 1, you receive a dividend of $2, and buy one more share for $47.00. At the end of year 2, you receive total dividends of $4 (e., $2 for each share), and sell the shares for $55.00 each. What is the time-weighted return on your investment? (Round your answer to 2 decimal places. Do not round intermediate calculations.) Return 1%You purchase 100 shares of stock for $25 a share. The stock pays a $3 per share dividend at year-end. a. What is the rate of return on your investment if the end-of-year stock price is (i) $22; (ii) $25; (iii) $26? b. What is your real (inflation-adjusted) rate of return if the inflation rate is 2%?Assume you purchase a share of stock for $50 at time t=0, and another share at $65 at time t= 1, and at the end of year 1 and year 2, the stock paid a $2.00 dividend. Also, at the end of year 2 you sold both shares for $70 each. What is the time-weighted rate of return? Give typing answer with explanation and conclusion
- 2. Answer both questions: a. You purchase 100 shares of stock for $40 a share. The stock pays a $2 per share dividend at year-end. What is the rate of return on your investment if the year-end stock prices turn out to be $38, $40, and $42? What is your real (inflation-adjusted) rate of return in each case, assuming an inflation rate of 3%? b. Consider the following information on the returns on stock and bond investment. Scenario Profitability Stocks Bonds Recession .2 -5% +14% Normal Economy .6 +15% +8% Boom .2 +25% +4% i) Calculate the expected rate of return and standard deviation in each investment. ii) Do your results support or contradict the historical record on the relationship between risk and return in the financial market in both Canada and the United States? iii) Which investment would you prefer? Explain your answer.You purchase 100 shares of stock for $50 a share. The stock pays a $3 per share dividend at year-end. A. What is the rate of return on your investment if the end of year stock price is (I) $47; (ii) $50; (iii) $53? B. What is your real (inflation adjusted) rate of return if the inflation rate is 5%?An investor buys a share of stock for $40 at time t = 0, buys another share of the same stock for $50 at t = 1, and sells both shares for $60 each at t = 2. The stock paid a dividend of $1 per share at t = 1 and at t = 2. The periodic money weighted rate of return on the investment is closest to: 23.0% 22.2% 23.8%
- The dividend on Simple Motors common stock will be OMR3 in 1 year, OMR4.25 in 2 years, and OMR6.00 in 3 years. You can sell the stock for OMR100 in 3 years. If you require a 12% return on your investment, how much would you be willing to pay for a share of this stock today? Select one: O a. OMR77.24 O b.OMR81.52 O c. OMR91.30 O d. OMR75.45 O e. OMR85.66You purchase 100 shares of stock for $25 a share. The stock pays a $2 per share dividend at year-end. What is the rate of return on your investment if the end-of-year stock price is (i) $23; (ii) $25; (iii) $26? What is your real (inflation-adjusted) rate of return if the inflation rate is 5%? (i) $23 (ii) $25 (iii) $26A stock costs $80 and pays a $2 annual dividend. If you expect to sell the stock after four years for $95, what is your anticipated return on the investment? Use Appendix B and Appendix D to answer the question. Round your answer to the nearest whole number. %
- Suppose you purchase one share of the stock of Red Devil Corporation at the beginning of year 1 for $46.50. At the end of year 1, you receive a dividend of $2, and buy one more share for $50.50. At the end of year 2, you receive total dividends of $4 (i.e., $2 for each share), and sell the shares for $58.50 each. What is the time-weighted return on your investment? (Round your answer to 2 decimal places. Do not round intermediate calculations.)What should you pay for a stock assuming you expect the following: a dividend of 1.50 paid at the end of years 1 and 2; cost of equity equal to 16 percent; and, a selling price of 45 at the end of two years?Suppose you bought XYZ stock 1 year ago for $6.54 per share and sell it at $2.79. You also pay a commission of $0.35 per share on your sale. What is the total return on your investment? The total return is %?