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n200080 [17]
2 years ago
13

Drew buys 100 shares of Balsamic Corporation for $23 per share. Over the next year, Balsamic pays four quarterly dividends of 35

cents per share and the share price increases to $25. What has Drew's annual return been on the stock?
Business
1 answer:
lara31 [8.8K]2 years ago
4 0

Answer:

14.78%

Explanation:

Drew's total investment = $23 x 100 = $2,300

during the year he received 4 dividend payments = 4 x 100 shares x $0.35 per share = $140

since the stock price increased, Drew's investment is now worth $2,500

if Drew was to sell his stocks, he would earn $200 + the $140 received as dividends = $340

Drew's annual return = $340 / $2,300 = 14.78%

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Lisa is choosing between three alternatives: a) working at her job that pays 60 dollars; b) writing a term paper which she value
choli [55]

Answer: $80

Explanation:

Opportunity cost is the benefit that is foregone for an individual by choosing one alternative over other alternatives available to him.

If the opportunity cost is lower for an individual then this will benefit him whereas if the opportunity cost is higher then this will not benefit the individuals.

The opportunity cost of writing a term paper is $80 that she values by going out with a friend and it is the higher cost alternative.

5 0
2 years ago
Trapper Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Und
mariarad [96]

Answer:

EPS

Plan I     $2.03 per share

Plan II    $1.78 per share

Explanation:

Plan I

As this plan is all equity plan, so there is no debt and no interest expense as well.

In the absence of taxes, We will use the EBIT  in the calculation of EPS

EPS  = Net Earning / Outstanding numbers of shares = $375,000 / 185,000 = $2.03 per share

Plan II

In this levered plan we have debt and equity combination. We also have to deduct the interest expense from EBIT to calculate the net income.

Interest Expense = $2,700,000 x 5% = $135,000

Net Income  = EBIT - Interest Expense = $375,000 - $135,000 = $240,000

EPS = Net Income / Outstanding numbers of shares = $240,000 / 135,000 = $1.8 per share

3 0
2 years ago
Buyer Henry is going to accept seller Shannon's $282,500 counteroffer. When will this counteroffer become a contract.
zhuklara [117]

The counteroffer will become a contract C. When Henry signs the counteroffer.

Although Shannon is agreeing to the $282,500 and can't change that on her end after she has submitted it, Henry still has to accept it and sign for the counteroffer. For the counteroffer to be contractual they have to be signed because there may be other counter offers coming in that could take the place of Shannon's.

3 0
2 years ago
LCH is a leading electronics company that produces and markets its own brand of desktop and laptop computers, for both individua
andriy [413]

Answer:

Communication audit

Explanation:

Communication audit is done to determine how effective communication tools are. It also profers solutions on how to improve on an organisation's communication infrastructure.

Apart from improving internal processes it is used to determine the best way to communicate to the external world.

In this scenario a communication audit is done to measure an external party (the customer) and their interaction with LCH, it's computers, and services.

Knowledge gained can better imporve products and services provided to the customer by LCH

5 0
2 years ago
Read 2 more answers
I sell pants that have $5 in variable costs (direct materials and labor). I have $100,000 in fixed costs, and I expect to sell 1
iren [92.7K]

Answer:

Mark-up(%) = 216.67%

Explanation:

<em>The mark-up  is the percentage of cost that is earned as profit. It is profit expressed as a proportion of cost.</em>

Mark-up= Profit/cost × 100

<em>Cost = Direct material cost+ direct labour cost + Fixed cost</em>

Cost per unit = 5 + (100,000/10,000)

                     =15 per unit.

The cost of a pair =2×15 = 30.

The profit per pair = 95 - 30 = $65

Mark-up(%)=  $65/30 × 100 = 216.67%

8 0
2 years ago
Read 2 more answers
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