An investor purchased 500 shares of XYZ stock at $28 per share (ignoring commissions). During the year, the stock paid dividends of $1.75 per share. The stock was later sold at $32.50 per share. What was the capital gains yield? A) 13.5% B) 16.1% C) 15.0% D) 16.7%

An investor purchased 500 shares of XYZ stock at $28 per share (ignoring commissions). During the year, the stock paid dividends of $1.75 per share. The stock was later sold at $32.50 per share. What was the capital gains yield? A) 13.5% B) 16.1% C) 15.0% D) 16.7%

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 55E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...

See similar textbooks

Related questions

Q: Need help this question

A: Step 1: Definition of Work-in-Process InventoryThe cost of goods manufactured (COGM) is the total…

Q: What is the cost of the ending work in process inventory?

A: Step 1:Given,Beginning work-in-process inventory: $182,000Total manufacturing costs: $915,000Cost of…

Q: provide correct answer

A: Step 1: Definition of the High-Low MethodThe High-Low Method is an accounting technique used to…

Q: Answer? ? Financial accounting

A: To calculate the total rate of return on this investment, we use the formula: Total Return =…

Q: Hello tutor provide answer this financial accounting question

A: Step 1: Analysis of information givenBeta = 1.2The yield on a 6-month T-bill can be taken as a…

Q: help me to solve this questions

A: Substituting the values: ROCE = $0.69/$49.00 * 100 ROCE=1.41% Thus, the analysts were forecasting a…

Q: Stock market that day? General accounting

A: Now, calculating the return:Return = (97.65/5,227.77) * 100=(0.01868) * 100= 1.87% Therefore, the…

Q: What was the variable overhead rate variance for the month of this financial accounting question?

A: Step 1: Define Variable Overhead Rate VarianceThe Variable Overhead Rate Variance measures the…

Q: help this questions answer

A: Step 1: Calculate the percentage change in output %ΔOutput=New Output−Old Output×100/Old Output…

Q: choose best answer

A: Step 1: Definition of Itemized Deductions and After-Tax CostItemized deductions are expenses that a…

Q: What is the total cost per unit......?

A: Step 1: Definition of Total Cost Per UnitThe total cost per unit is the sum of all costs incurred to…

Q: Provide correct answer this financial accounting question not use ai

A: Step 1: Define Total AssetsThe accounting equation states that a company's total assets are the sum…

Q: Solve This one Please

A: 1: Computation of over-applied or under-applied overheadApplied Overhead = Predetermined overhead x…

Q: What is the coupon rate of this financial accounting question?

A: Step 1: Definition of Coupon RateThe coupon rate is the fixed annual interest rate that a bond…

Q: Zeb Enterprises' corporate charter allows it to issue 3,000,000 shares of common stock. In its first…

A: Explanation of Authorized Shares: Authorized shares represent the maximum number of shares that a…

Q: I want to this question answer of this general Accounting question

A: Step 1:First calculate the average operating assets for the year 2024: Average operating assets =…

Q: On December 31, Year 8, Suzi McDowell wants to have $60,000. She plans to make 6 deposits in a fund…

A: Step 1: Given Value for Calculation Future Value of Payment = fv = $60,000Number of Deposit = n =…

Q: Find turnover and average total assets

A: Calculation of Average Total AssetsROI = Net Income / Average Total Assetsor, 19% = $95,000 /…

Q: Provide correct solution with calculation

A: Step 1: Definition of High-Low MethodThe high-low method is a technique used to estimate the fixed…

Q: Richmond Corporation's 2021 balance sheet reported net fixed assets of $15,725,600 and accumulated…

A: Gross Fixed Assets refer to the total original cost of a company's long-term tangible assets before…

Q: total cost of work in process.

A: Step 1: Definition of Work-In-Process InventoryWork-in-process (WIP) inventory refers to goods that…

Q: Value of the note ? Accounting question

A: Step 1: Definition of Maturity ValueThe maturity value of a note is the total amount that must be…

Q: General Accounting

A: Step 1: Define Rate of ReturnRate of Return (ROR) is the percentage gain or loss on an investment…

Q: Jackson Manufacturing applies overhead using a normal costing approach based on machine-hours.…

A: Explanation of Machine Hours: Machine hours represent the time that production equipment is actively…

Q: Sub. General accounting

A: Step 1:First calculate the contribution margin per unit: Contribution margin per unit = Selling…

Q: Get correct answer this financial accounting question

A: Step 1: Define Units-of-Production DepreciationThe units-of-production depreciation method allocates…

Q: Calculate the annual depreciation expense

A: Explanation of Straight-Line Depreciation Method: The straight-line depreciation method is a…

Q: Provide correct answer general accounting

A: Step 1: Define Projected Net IncomeProjected net income is an estimate of a company's future…

Q: 4 POINTS

A: Explanation of Earnings & Profits (E&P): E&P is a tax accounting concept that measures a…

Q: Accurate answer

A: Explanation of Total Assets:Total assets refer to all the resources owned by a company that have…

Q: ??

A: Step 1: Definition of Variable ExpensesVariable expenses, also known as variable costs, change in…

Q: How many units must be sold to reach this profit goal ? General accounting

A: Step 1: Definition of Break-Even and Target Profit Sales VolumeThe break-even and target profit…

Q: What is the total equity for horizon supplies at year end?

A: Let's use the basic accounting equation, Total Assets = Total Liabilities + Total EquityTotal Assets…

Q: Please provide solution this financial accounting question

A: Step 1: Define Total Return on StockTotal Return measures the overall gain or loss on an investment,…

Q: provide correct answer is best

A: Step 1: Find Equity (E)The Debt-Equity Ratio formula is: D/E = 0.52E = D/0.52 Substituting D = 4,…

Q: Want to this question answer general Accounting

A: Step 1: Derive Return on Equity (ROE) Using Du Pont AnalysisReturn on Equity (ROE) measures how…

Q: financial accounting

A: Step 1: Definition of Return on Common Stockholders' EquityReturn on Common Stockholders' Equity…

Q: Hi expert please help me this question

A: Step 1: Given Value for Calculation Annual Revenue Increase = r = $31,000Annual Expenses Increase =…

Q: General Accounting

A: Step 1: Define Credit SalesCredit sales refer to transactions where a company sells goods or…

Q: Davenport Sweets Inc. sold its chocolate division, resulting in a loss of $80,000. Assuming a tax…

A: Explanation of Loss on Disposal: Loss on disposal represents the negative difference between the…

Q: Help me this question

A: Step 1: Definition of Absorption CostingAside from variable costing, absorption costing is used to…

Q: MCQ

A: Explanation of Straight-Line Depreciation:Straight-line depreciation is a method used to allocate an…

Q: Help this answer

A: Step 1: Definition of Absorption CostingAnother method to account for the costs in cost accounting…

Q: What was your holding period return on these financial accounting question?

A: Step 1:Given,Investment at the beginning of the year: $75Growth in the value of the investment:…

Q: Blossom Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead…

A: Detailed Explanation of the Adjusting Entry for Underapplied OverheadStep 1: Understanding the…

Q: Veerappan Corp. paid $3,000,000 to acquire all of the common stock of Jensen Inc. on January 1,…

A: Explanation of Consolidated Net Income: This represents the combined net income of both the parent…

Q: Provide correct option with calculation

A: If you have any questions let me know in the comment box thankyou.

Q: Can you please solve this general accounting question?

A: Step 1: Define Weighted-Average Inventory Costing MethodThe weighted-average inventory costing…

Q: Help

A: Explanation of Days Sales in Receivables (DSR):The Days Sales in Receivables (DSR) measures the…

Q: Bonnie and Clyde are the only two shareholders in Getaway Corporation. Bonnie owns 60 shares with a…

A: In this scenario, Bonnie and Clyde are the only two shareholders in Getaway Corporation. Bonnie owns…

Question

100%

Financial accounting question

An investor purchased 500 shares of XYZ stock at $28 per share
(ignoring commissions). During the year, the stock paid dividends of
$1.75 per share. The stock was later sold at $32.50 per share.
What was the capital gains yield?
A) 13.5%
B) 16.1%
C) 15.0%
D) 16.7%

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the dividends paid to common stockholders for last year were 2,600,000 and that the market price per share of common stock is 51.50. Required: 1. Compute the dividends per share. 2. Compute the dividend yield. (Note: Round to two decimal places.) 3. Compute the dividend payout ratio. (Note: Round to two decimal places.)
The Castle Company recently reported net profits after taxes of $15.8 million. It has 2.5 million shares of common stock outstanding and pays preferred dividends of $1 million a year. The company’s stock currently trades at $60 per share. Compute the stock’s earnings per share (EPS). What is the stock’s P/E ratio? Determine what the stock’s dividend yield would be if it paid $1.75 per share to common stockholders.
Errol Corporation earned net income of $200,000 this year. The company began the year with 10,000 shares of common stock and issued 5,000 more on April 1. They issued $7,500 in preferred dividends for the year. What is the numerator of the EPS calculation for Errol?
Given the following year-end information, compute Greenwood Corporations basic and diluted earnings per share. Net income, 15,000 The income tax rate, 30% 4,000 shares of common stock were outstanding the entire year. shares of 10%, 50 par (and issuance price) convertible preferred stock were outstanding the entire year. Dividends of 2,500 were declared on this stock during the year. Each share of preferred stock is convertible into 5 shares of common stock.
Ratio Analysis MJO Inc. has the following stockholders equity section of the balance sheet: On the balance sheet date, MJOs stock was selling for S25 per share. Required: Assuming MJOs dividend yield is 1%, what are the dividends per common share? Assuming MJOs dividend yield is 1% and its dividend payout is 20%, what is MJOs net income?
Longmont Corporation earned net income of $90,000 this year. The company began the year with 600 shares of common stock and issued 500 more on April 1. They issued $5,000 in preferred dividends for the year. What is the numerator of the EPS calculation for Longmont?
Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the market price per share for Rebert is 51.50. Required: 1. Compute the dollar amount of preferred dividends. 2. Compute the number of common shares. 3. Compute earnings per share. (Note: Round to two decimals.) 4. Compute the price-earnings ratio. (Note: Round to the nearest whole number.)
Bastion Corporation earned net income of $200,000 this year. The company began the year with 10,000 shares of common stock and issued 5,000 more on April 1. They issued $7,500 in preferred dividends for the year. What is the EPS for the year for Bastion?
Albion Inc. provided the following information for its most recent year of operations. The tax rate is 40%. Required: 1. Compute the following: (a) return on sales, (b) return on assets, (c) return on stockholders equity, (d) earnings per share, (e) price-earnings ratio, (f) dividend yield, and (g) dividend payout ratio. 2. CONCEPTUAL CONNECTION If you were considering purchasing stock in Albion, which of the above ratios would be of most interest to you? Explain.
Brunleigh Corporation earned net income of $200,000 this year. The company began the year with 10,000 shares of common stock and issued 5,000 more on April 1. They issued $7,500 in preferred dividends for the year. What is Brunleigh Corporations weighted average number of shares for the year?
James Corporation earned net income of $90,000 this year. The company began the year with 600 shares of common stock and issued 500 more on April 1. They issued $5,000 in preferred dividends for the year. What is the EPS for the year for James (rounded to the nearest dollar)?
What was the capital gains yield ? Solve this question general Accounting