Last year, Mike bought 100 shares of Dallas Corporation common stock for $53 per share. During the year he received dividends of $1.45 per share. The stock is currently selling for $60 per share. What rate of return did Mike earn over the year?

Q: Define Continuous probability distribution

A: Probability Distribution: It is the list of values where each outcome is linked with the…

Q: Explain “gain contingency”.

A: MEANING OF GAIN CONTINGENCY:- A gain contingency is an uncertain situation that will be resolved in…

Q: Miller orr Model describes different levels such as____. a. Upper Limit b. Lower limit c. Return…

A: Cash is one of the important assets for the firm, and it affects the overall liquidity of the firm.…

Q: Define value chain.

A: Value Chain: Value Chain is the combination of activities including all the costs to do such…

Q: Explain Destination principle in relation to VAT.

A: The destination principle is a principle in Value Added Tax (VAT) that determines the taxation of…

Q: Define Net realizable value.

A: Net realizable value is the expected cash to be received against a given asset.  Thus, Net…

Q: Explain compound interest.

A: Compound interest.

Q: Describe the revaluation model.

A: Introduction: The revaluation model stretches a business the option of carrying a fixed asset at its…

Q: Formula for put call parity?

A: Put call parity Put-Call parity defines the value of same class European put and call options. Put…

Q: Explain gaining ratio

A: Introduction:- Gaining ratio may be defined as Gaining ratio is a type of financial tool, which…

Q: Define synergistic benefits

A: Synergy is the concept according to which the value of the firm after combining with each other is…

Q: at output

A: Given: To explain the Vat output as,

Q: State TWO (2) factors that differentiate between the Rate of Return and Cost of Capital.

A: The rate of return and cost of capital are key considerations in financing and investing. These…

Q: Draw the step of the accounting Cycle ?

A: The accounting cycle is the comprehensive process of documenting and processing all of a company's…

Q: How to calculate r value

A: The interest rate: The rate that is used to compute the simple or compound interest is known as the…

Q: Draw a figure to explain Elements of required return - establishing a MARR?

A: The figure is represented as below: Note: Values assumed

Q: Define maturity value

A: Maturity date: Maturity date is the due date on bond. On due date, the issuer is supposed to pay the…

Q: What is alpha transfer?

A: The term ‘Alpha’ refers to the active return on investment. In other words, the excess return from…

Q: Define alpha value.

A: Alpha is a value that is used in computation of expected return from an investment. Expected return…

Q: Define efficient frontier

A: The efficient frontier is the collection of efficient portfolios, which provide the most expected…

Q: Explain retention ratio

A: Retention Ratio represents the percentage of profits retained by a Company. The Retention ratio…

Q: What is internal rate of return (IRR) method?

A: NPV shows the excess of PV of all the cash inflows over the initial outlay of the project. It is a…

Q: Define risk

A: Risk can be defined as whenever there are chances that the investments’ actual outcomes are…

Q: Define conversion price

A: Introduction: The conversion price is stated when the security is delivered. In case of a…

Q: Define spin-out

A: Introduction: Spinouts helps the parent corporation by permitting it to emphasis on its core…