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2 years ago

You purchased shares of stock one year ago at a price of $64.24 per share.

Business

1 answer:

CaHeK987 [17]2 years ago

5 0

Answer:

11.31%

Explanation:

The real share cost (C) is the price at purchas added to the increase due to inflation:

$C = \$64.24*1.0275\\C=\$ 66.00$

The total final value (V) of the share is the selling price added to the dividends payed:

$V= \$71.36 +\$2.11 = \$73.47$

The real return rate (R) is given by:

$R = \frac{V-C}{C}*100 \%\\R= \frac{73.47-66.00}{66.00}*100 \%\\R= 11.31\%$

The real return was 11.31%

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You have an opportunity to acquire a property form First Capital Bank. The bank recently obtained the property from a borrower w

love history [14]

Answer:

Acquiring the property will not be profitable. This is supported by the computation below;

Cash outflow required;

Offer cost $200,000

Other acquisition cost $10,500

Repairs cost $12,000

Selling expenses and fee $3,000

Loan Interest (180,000x8%) $14,400

Total $239,900

Expected selling price $225,000

Expected Loss $14,900

Explanation:

It is assumed that the $180,000 loan from the bank will be completely absorbed in the process of bringing the property into a good selleable condition. Also, the interest payable on loan will be paid monthly which will affect the liquidity of the buyer. Except funds are sought for somewhere else, the buy can not pay for the initial cost of the property. The venture will not be profitable.

Workings:

Cash outflow required;

Offer cost $200,000

Other acquisition cost $10,500

Repairs cost $12,000

Selling expenses and fee $3,000

Loan Interest (180,000x8%) $14,400

Total $239,900

Expected selling price $225,000

Expected Loss $14,900

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2 years ago

What is a joint venture? Multiple Choice an effort in which one firm grants access to its patents and trademarks for a fee an ar

natali 33 [55]

Answer:

A cooperative effort among two or more organizations that share a common interest in a business enterprise or undertaking.

Explanation:

A joint venture is defined as a business agreement where two or more parties pool their resources together to achieve a common goal. Usually profits and losses are shared equally among the parties unless there is an agreement to share otherwise.

The joint venture is an independent entity that is seperate from its owners. That means any liability of the joint venture is not binding on the parties involved.

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2 years ago

Read 2 more answers

Heidi ganahl's life story helps the employees and franchisees of camp bow wow understand _____.

GrogVix [38]

Answer: Culturally consistent decisions

Explanation:

The options are:

a The organizational structure

b The environmental complexity

c Behavioral substitutions

d Culturally consistent decisions

Heidi Ganahl's life story helps the employees and franchisees of Camp Bow Wow understand culturally consistent decisions.

Organizational stories are being told by people in order to recall certain things that has happened in an organization and to also emphasize culturally consistent decisions, assumptions, and actions.

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2 years ago

Of the items listed below, which ones have high entropy?

STatiana [176]

A. papers randomly scattered

d. a mixed deck of cards

e. a room after a party

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2 years ago

Nemo Haulers is considering whether to purchase a new mini tractor for moving furniture within its warehouse. Nemo calculates th

sineoko [7]

Answer:

$3,208.62

Explanation:

initial investment for a new mini tractor -$3,000

5 yearly cash flows of $4,000

discount rate 10%

first we must find the present value of the cash flows:

$4,000 x 3.7908 (PV annuity factor, 10%, 5 periods) = $15,163.20

to determine the equivalent annual cash flow we can use the following formula:

EAC = (NPV x r) / [1 - (1 + r)⁻ⁿ]

NPV = $15,163.20 - $3,000 = $12,163.20

r = 10%

n = 5

EAC = ($12,163.20 x 0.1) / [1 - (1 + 0.1)⁻⁵] = $1,216.32 / 0.379 = $3,208.62

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2 years ago