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Taya2010 [7]
2 years ago
11

You are considering the purchase of a certain stock. You expect to own the stock for the next four years. The current market pri

ce of the stock is $24.50 and you expect to sell it for $55 in four years. You also expect the stock to pay an annual dividend of $1.25 at the end of year 1, $1.35 at the end of year 2, $1.45 at the end of year 3 and $1.55 at the end of year 4. What is your expected return from this investment?
Business
1 answer:
murzikaleks [220]2 years ago
7 0

Answer:

The answer is: The expected rate of return from this investment is 26.68%

Explanation:

We are given the following cash flows for this operation:

  • Initial investment = -$24.50
  • Cash flow 1 = $1.25 (dividend year 1)
  • Cash flow 2 = $1.35 (dividend year 2)
  • Cash flow 3 = $1.45 (dividend year 3)
  • Cash flow 4 = $56.55 ($1.55 dividend year 4 + $55 stock's sales price)

Using an excel spreadsheet and the IRR function:

=IRR(value 1: value 5) =26.68%  

where

  • value 1 = -24.50
  • value 2 = 1.25
  • value 3 = 1.35
  • value 4 = 1.45
  • value 5 = 56.55

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Cedric, a brand manager, transferred from the united States to japan He dscovered that athough people in the Unted States highly
Firdavs [7]

Answer: collectivism

Complete Question:

Cedric, a brand manager, transferred from the united States to japan He discovered that although people in the United States highly valued individualism, people in Japan expect individuals to conform to group expectations. Cedric concluded that Japan places more of an emphasis on:

Explanation: Collectivism values the group over individuals belonging to the group. In cultures where collectivism is the norm, individuals tend to want to conform to the group expectations. Also, it is common for individuals in collectivist societies to define themselves as belonging to a group than as individuals so groups are a way of identifying themselves.  

While individualism values individuals's right and uniqueness, collectivism does not  but sees value in maintaining the cohesion in a group, which in turn promotes conformity.

6 0
2 years ago
True or False: The statistical difference between a process operating at a 5 sigma level and a process operating at a 6 sigma le
Nookie1986 [14]

Answer:

True

Explanation:

The statement is true.

8 0
2 years ago
Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $43,500.
Paraphin [41]

Answer:

$3,850

Explanation:

The computation of the machine's second-year depreciation under the straight-line method is shown below:

= (Cost of the machine - salvage value) ÷ (estimated useful life)

= ($43,500 - $5,000) ÷ (10 years)

= ($38,500) ÷ (10 years)  

= $3,850

In this method, the depreciation is the same for all the remaining useful life. Therefore, for the second year also, the depreciation expense is the same i.e $3,850

8 0
2 years ago
PB1.
maria [59]

Answer:

Explanation:

1. prime costs: direct materials+direct labour

                   = $22,000+$35,000

                    = $57,000

2. Conversion Costs= Direct labour + Manufacturing Overheads

                      = $35,000+ $17,500

                      = $52,500

3. Product Costs = direct material+ direct labour+ manufacturing overheads

                             = $22,000 + $ 35,000 + $17,500

                             = $74,500

4. Period Costs = Selling expenses+ administrative expenses

                          = $17,600 + $13, 400

                          = $31,000

If 13,750 equivalent units are produced, what is the equivalent material cost per unit = direct materials costs / unit produced

             = $22,000/13,750

            = $1.6 per unit

If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit = total conversion costs/unit produced

                   = $52,500/17,500

                   =$3 per unit

3 0
2 years ago
Miles Company, a wholesaler, budgeted the following sales for the indicated months: June July August Sales on account $2700000 $
Alex Ar [27]

Answer:

$2475000

Explanation:

The computation of the cost of goods sold for the June month is shown below:

As it is given that total sales of June is $2,970,000

And, the marked up is cost plus 20%

So based on the above information, the cost of goods sold is

= $2,970,000 × 100 ÷ 120

= $2,475,000

Therefore, all the other information which is given is not relevant. Hence, ignored it

8 0
2 years ago
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