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s344n2d4d5 [400]
2 years ago
13

Jason purchased ABC stock at $40 per share and DEF stock at $35 per share on the same day in 2015. Exactly 6 months later, the A

BC stock is worth $42.00 per share and has not paid a dividend while the DEF stock is worth $36 per share and has paid 2 quarterly dividends of $0.50 each. The holding period returns are _______.
A) ABC, $2.00 and DEF $2.00.
B) ABC 5% and DEF 2.9%.
C) ABC 5% and DEF 5.7%.
D) The holding period return cannot be determined because we do not know the discount rate.
Business
1 answer:
Pachacha [2.7K]2 years ago
7 0

Answer:

C) ABC 5% and DEF 5.7%

Explanation:

Data provided in the question:

Purchasing Cost of Stock ABC purchased = $40 per share

Purchasing Cost of Stock DEF purchased = $35 per share

Time = 6 months

Selling price of share of ABC = $42 per share

Selling price of DEF share = $36

Dividend paid to the DEF = $0.5 each quarter i.e $0.5 twice in 6 months

Thus,

Total dividend paid to DEF = $0.5 × 2

= $1

Now,

For ABC

Total return = Selling price - Purchasing Cost

= $42 - $40

= $2 per share

thus,

Holding period return = [ Total return ÷ Purchasing cost ] × 100%

= [ $2 ÷ $40 ] × 100%

= 5%

For DEF

Total return = Selling price + Dividend received - Purchasing Cost

= $36 + $1 - $35

= $2 per share

thus,

Holding period return = [ Total return ÷ Purchasing cost ] × 100%

= [ $2 ÷ $35 ] × 100%

= 5.7%

Hence,

option C) ABC 5% and DEF 5.7%.

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Hi, Sierra,
hichkok12 [17]

Answer:

Question requires that you find five sentence fragments, one dangling modifier, one passive-voice sentence, and one parallelism fault.

Sentence Fragment

A sentence fragment is so because it is either missing a subject, or a verb, and/ or a complete thought. It is therefore an incomplete sentence.

  • 5. Although no clear line separates fun from profit or a hobby from a business.
  • 12. If you spend eight or more hours a day trading on eBay.
  • 17. If you spend $5 for a garage sale vase and sell it for $50.
  • 18. The IRS would probably consider this a business transaction.
  • 20. Even for eBay sellers who are just playing around. (not a proper sentence)

Dangling Modifier

Attempts to modify an unclear word in the sentence

  • 19. All profits are taxable.

It is unclear what profits the sentence alludes to.

Passive-voice sentence

In Passive voice, the subject of the text is the one that is being acted upon.

  • 13. The IRS would tend to think you are in a business.

Parallelism Fault

This occurs when the sentence is not grammatically parallel. In other words the sentence does not follow as it is not using the same structure.

  • 3. As you are probably already aware, you can use eBay or one of the other sellers to clean out your closets or to run a small business.
5 0
2 years ago
The government imposes a $1,000 per year license fee on all pizza restaurants. Which cost curves shift as a result? Select one:
zzz [600]

Answer:

correct option is a. average total cost and average fixed cost.

Explanation:

given data

license fee  = $1,000 per year

solution

we know that cost curves shift will be express as when the increase in the price of factor of production increase cost and shift cost curves upward

so cost curves shift by the average total cost and the average fixed cost

so here correct option is a. average total cost and average fixed cost.

3 0
2 years ago
Carrie's Car Care receives more than 25% of its total sales revenues from operations outside of the United States. Carrie's woul
Anvisha [2.4K]

Answer:

The answer is: E) None of these.

Explanation:

A foreign national is a person who wasn´t born in the country in which he or she temporarily lives in.

We don´t have enough information to know if Carrie´s Car Care is a wealthy company. Maybe its total sales are just $10,000 a year but they export $2,500.

A multinational corporation usually has branches or subsidiaries. All we know about Carrie´s Car Care is that it makes some money outside the US, but we don´t know how. Maybe they simply export 25% of their products or maybe they are a huge multinational corporation. Not enough information.

The term globalization corporation doesn´t exist. The term corporate globalization refers to very large multinationals that reach all or most of the world´s markets.

6 0
2 years ago
Hassock Corp. produces woven wall hangings. It takes 2 hours of direct labor to produce a single wall hanging. Hassock’s standar
Anastasy [175]

Answer:

Direct labor rate variance= $3,630 favorable

Explanation:

Giving the following information:

Standard production= 2 hours per unit

Standard labor cost= 14 per hour.

During August, Hassock produced 12,000 units and used 24,200 hours of direct labor at a total cost of $335,100.

To calculate the direct labor rate variance, we need to use the following formula:

Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity

Actual rate= 335,100/24,200= $13.85

Direct labor rate variance= (14 - 13.85)*24,200= $3,630 favorable

6 0
2 years ago
Prepare a net worth statement for Ben Lingo based on this information: He owns a car worth $2,000, but owes $1,500 on it at the
Murljashka [212]

Answer:

Ben Lingo's Net Worth Statement:

Assets:

Cash $82

Savings $150

Car $2,000

Inventory $1,200

Total Assets = $3,432

Liabilities:

Car loan $1,500

Credit Union loan $80

Total Liabilities = $1,580

Net Worth = Total Assets - Total Liabilities

                 = $3,432 - $1,580

                 = $1,852

5 0
2 years ago
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