the price of a stock is $45 at the beginning of the year and $50 at the end of the year. of the stock paid a $1 dividend and inflation was 3%, what is the real holding-period return for the year?

Answers

Answer 1

Answer:

Real holding period return on investment =10.03%

Explanation:

Total return is the sum of capital appreciation plus the distribution received over the course of the investment period.

Capital gain is the difference between the current value of the investment and the initial cost of the investment

Total return = capital gain + distributed dividends

Capital gain= 50-45= 5

Dividend = 1

Percentage return =( total return/ cost of investment ) × 100

Total return = 5+1= 6

Total return = 6/45 × 100= 13.333

Inflation is the increase in the price level.It erodes the value of money.rise in the price of money  

Nominal interest is that quoted for investment or loan transactions. It has not been been adjusted for inflation.  

Real interest rate is the amount of interest in terms of the the quantity of good and services that can be purchased. It is the nominal interest rate adjusted for inflation.  

The relationship between inflation, real interest and nominal interest rate is given using the Fishers Effect;  

N = ( (1+R) × (1+F)) - 1  

N- nominal rate, R-real rate, F- inflation  

real  rate of return = (I.13/1.03) -1 = 0.1003

Nominal rate of return =  0.1003 × 100 = 10.032%


Related Questions

______ are storage facilities where incoming shipments from various suppliers are sorted and batched and then delivered to buyers and spend little or no time in storage.

Answers

Answer:

Distribution centers

Explanation:

Distribution centers are large storage facilities covering a large area where that facilitates the transfer of vast quantities of goods within a relatively short duration.

Distribution centers are points of distribution usually located close to transportation terminals where goods are secured from various suppliers and moved to the different customers of the suppliers by use of computing system that enables quick and reliable logistics

The duration of goods handling in distribution centers can be as short as less than a day for perishable goods.

The principal attraction of __________ compared to RSA is that it appears to offer equal security for a far smaller bit size, thereby reducing processing overhead.

Answers

Answer:

elliptic curve cryptography

Explanation:

The principal attraction of ECC (Elliptic Curve Cryptography) compared to RSA is that it appears to offer equal security for a far smaller bit size, thereby reducing processing overhead.

What do you mean by Security?

By restricting others' freedom to act, security is resistance to potential harm (or other unwanted coercive change) caused by others.

A method of public-key encryption known as elliptic-curve cryptography (ECC) is based on the algebraic structure of elliptic curves over finite fields. ECC enables similar security to be achieved with smaller keys as compared to non-EC encryption (based on simple Galois fields).

Elliptic curves can be used for several applications, including key agreement, digital signatures, and pseudo-random generators.

Therefore, The principal attraction of ECC (Elliptic Curve Cryptography) compared to RSA is that it appears to offer equal security for a far smaller bit size, thereby reducing processing overhead.

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The returns on the common stock of Cool Toys are quite cyclical. In a boom economy, the stock is expected to return 23 percent in comparison to 14 percent in a normal economy and a negative 18 percent in a recessionary period. The probability of a recession is 18 percent while the probability of a boom is 22 percent. What is the standard deviation of the returns on this stock

Answers

Answer:

13.71%

Explanation:

the expected returns on the stock:

normal economy = 0.14 x 0.6 = 0.084

boom economy = 0.23 x 0.22 = 0.0506

recessionary economy = -0.18 x 0.18 = -0.0324

expected return = 0.1022

the variance for each economic period:

normal economy = (0.14 - 0.1022)² = 0.00142884

boom economy = (0.23 - 0.1022)² = 0.01633284

recessionary economy = (-0.18 - 0.1022)² = 0.07963684

the variance of the stock's returns:

normal economy = 0.6 x 0.00142884 = 0.000857304

boom economy = 0.22 x 0.01633284 = 0.0035932248

recessionary economy = 0.18 x 0.07963684 = 0.014334631

variance of the stock's returns = 0.018785159

standard deviation of stock's returns = √0.018785159 = 0.137058964 = 13.71%

Maple Leaf, Inc., a television manufacturer, would like to reduce its inventory. To this end, you are asked by the operations manager to assess its inventory level. You have the following information on average inventories from last year's financial statement:

Raw materials $2,500,000
Work-in-process $1,000,000
Finished goods $800,000

In addition, the cost of goods sold last year (50 weeks) was $12 million. What was the inventory turnover?

a. Less than or equal to 2
b. Greater than 2 but less than 3
c. Greater than 3 but less than 4
d. Greater than 4

Answers

Answer:

Maple Leaf, Inc.

Inventory Turnover:

b. Greater than 2 but less than 3

Explanation:

a) Data and Calculations:

1) Average inventories:

Raw materials     $2,500,000

Work-in-process  $1,000,000

Finished goods      $800,000

Total average inventory   $4,300,000

Cost of goods sold = $12,000,000

Inventory Turnover = Cost of goods sold/Average Inventory

= $12,000,000/$4,300,000

= 2.79 times

2) Inventory turnover is a financial ratio that shows the number of times in a year that inventory has been sold by Maple Leaf, Inc.  When it divides the number of days, say 360 days in a year, the ratio that comes out shows the number of days it takes Maple to sell its inventories.

3. Which of the following is not a characteristic of a good citizen?
obeying laws
being informed about key issues
using natural resources wisely
owning property

Answers

Answer:

Owning property

Explanation:

Its the only one that affects solely 1 person rather than benefit the community as a whole

Let's say that you're the sole IT person in your company, and your boss wants a way to block certain websites from employees. What can you set up to help with this request

Answers

Answer:

proxy server

Explanation:

A proxy server is an application on a server that manages the requests when a a client tries to get the resources from the server and when someone is trying to get into a website the proxy server makes the request, provides the response from the web server and sends the data so it can be visualized and in this process, it can block the access to certain websites. According to that, the answer is that you have to set up a proxy server to help with this request as it will allow you to block the websites.

Having drugs available OTC has potential advantages and disadvantages for consumers. What is one of the advantages?

Answers

Answer:

Explanation:

One advantage to this and probably the most important advantage is that it provides faster and more convenient access to effective treatment. This is because individuals are able to simply walk into the store and as the pharmacist for the medicinal drug that they are looking for in order to treat their symptoms. This would not be possible if the drugs were not available OTC.

Why did people demand not just banking and stock market reform but also new forms of government after the Great Depression?

Answers

Answer:

The Depression affected the confidence that people had on the government.

Explanation:

The Great Depression began in 1929 and continued until 1933 and it caused high unemployment rates, a decrease in output and deflation. During this time, President Hoover was accused of not taking enough measures to stop the crisis and this ended up on him losing the 1932 election as people lost their confidence in the government. Also, the Great Depression resulted in changes on the government and on how it faces economic crisis. Because of that, the answer is that people demanded not just banking and stock market reform but also new forms of government after the Great Depression because it affected the confidence that people had on the government.

Martha made an offer to buy Drake’s home, and he accepted it. Under the terms of the agreement, Martha was supposed to make an earnest money deposit of $10,000, but she only put down $5,000. Drake accepted the lesser deposit, and the sale was ultimately finalized. This is an example of ______.

Answers

Answer:

Martha made an offer to buy Drake’s home, and he accepted it. Under the terms of the agreement, Martha was supposed to make an earnest money deposit of $10,000, but she only put down $5,000.

Drake accepted the lesser deposit, and the sale was ultimately finalized. This is an example of accepting partial performance

Explanation:

When membership in an organization allows for a reduction in the price of museum tickets, it is an example of a

Answers

Answer:

Material benefit

Explanation:

Material benefit from being part of an organisation includes money, consideration, gift or other benefit that a person gains as a result being in an organisation.

The organisation makes a promise to give something not value to the beneficiary.

This fosters a sense of belonging for members and greater loyalty.

An example of material benefit are a reduction in price of museum tickets, discounts in purchases from select retailers, discount in hotel reservation, and so on.

How managers plan significant investments in projects that have long term implications such as purchasing new equipment or introducing new products is called

Answers

The answer is Capital Budgeting.

Sales contracts between parties residing in the United States and foreign countries are typically governed by the:_________

Answers

Answer:

United Nations Convention on Contracts for the International Sale of Goods (CISG).

Explanation:

Sales contracts between parties residing in the United States and foreign countries are typically governed by the United Nations Convention on Contracts for the International Sale of Goods (CISG).

The United Nations Convention on Contracts for the International Sale of Goods (CISG) also known as the Vienna Convention, was founded on the 11th of April, 1980. The CISG provides a uniform and unique framework for the trade of goods in the in international markets (international commerce). It was developed by the United Nations Commission on International Trade Law (UNCITRAL) and is generally considered to be a multilateral uniform international sales treaty.

In situations where rivals can readily copy the successful features of a company's strategy or duplicate its attempts to attract customers, the only dependable path to competitive advantage is for a company to staff the company's organization with smarter and more talented people. outexecute rivals by developing a collection of resources and capabilities that enables the company to perform certain important value chain activities at lower cost than rivals or with greater effectiveness than rivals (thereby gaining the ability to deliver more value to customers via either a lower price or a more appealing product). do a better job of training, empowering, motivating, and compensating employees than rivals. perform value chain activities quicker or faster than rivals can. outsource more value chain activities than rivals do and thereby achieve lower operating costs.

Answers

Answer:

Outexecute rivals by developing a collection of resources and capabilities that enables the company to perform certain important value chain activities at lower cost than rivals or with greater effectiveness than rivals (thereby gaining the ability to deliver more value to customers via either a lower price or a more appealing product).

Explanation:

All business strategies boil down to two desired outcomes: outpacing competition with a product that is either cheaper, or of higher quality (more valuable or appealing).

If rival firms are imitating a company's strategy, the only way forward for said company is to modify its strategy so that it becomes even more effective than that of its competitors. In this way, the company will achieve the goal of either providing goods or services at lower cost, or at higher qualities.

If a customer buys 1 FLB Oct 50 call at 3 and she exercises the option to buy 100 shares when the market is at 60, what is the cost basis of the 100 shares

Answers

Answer:

$5,300

Explanation:

A customer buys 1 FLB Oct 50 call at 3 and she exercises the option to buy 100 shares

= 3 × 100 shares

= $300

The customer bought 100 shares at a price of $50

= 50 × 100 shares

= $5,000

Therefore, the cost basis of the 100 shares can be calculated as follows

= $300 + $5,000

= $5,300

Hence the cost basis of the 100 shares is $5,300

Certain countries do not allow importers to purchase insurance abroad. Which Incoterm is therefore not available to importers located in these countries?

Answers

Answer:

CIP (Carriage and Insurance Paid)

Explanation:

This implies that unlike in countries where importers can buy insurance under the Carriage and Insurance Paid To (CIP) part of the Incoterms (International commerce terms) which transfers the risks of damage to the carrier agent.

However, in this countries they do not allow importers such privileges.

Iron Works International is considering a project that will produce annual cash flows of $37,400, $46,100, $56,800, and $22,300 over the next four years, respectively. What is the internal rate of return if the project has an initial cost of $113,600?

Answers

Answer:

16.73%

Explanation:

The computation of the internal rate of return is shown below:-

Let irr be x%

At irr, the present value of inflows = Present value of outflows.

So,

$113,600 = 37,400 ÷ 1.0x + 46,100 ÷ 1.0x^2 + 56,800 ÷ 1.0x^3 + 22,300 ÷ 1.0x^4

x = irr = 16.73%

Therefore for computing the internal rate of return we simply applied the above formula.

To arrive at net cash provided by operating activities, it is necessary to report revenues and expenses on a cash basis. This is done by

Answers

Answer:

Indirect method

Explanation:

The indirect method reconciles the Operating income to the Operating cash flow by adjusting the Operating Income by (1) Non-cash items previously added or deducted from Operating Income and (2) adjusting for changes in working capital items.

Working capital needs of a company are projected by estimating what out-of-pocket expenses will be incurred and when the revenues from sales are to be collected, which is done by ________.

Answers

Answer:

Making a cash budget (cash budgeting)

Explanation:

Remember, amounts to be spent are called expenses and revenues from sales could cover this expenses.

One tool used today by businesses to determine the working capital or amounts needed to run operations is the cash budget.

Simply put, the cash budget contains information related to what out-of-pocket expenses will be incurred by a business, and when the revenues from sales are to be collected.

The flat tax

a. shifts the burden of taxes to businesses.
b. would complicate tax filing for most individuals.
c. departs from ability-to-pay principle of taxation.
d. is strictly proportional even when some income is exempted.

Answers

Answer:

c. departs from ability-to-pay principle of taxation.

Explanation:

The flat tax rate requires every person to pay the same percentage of their incomes as a tax component. Basically there is no distinction in earning $1,000 or $10,000.

This means the principle of taxation that is the rich class shall pay in order to provide basic facilities to the poor will not meet, if rich and poor are charged the same.

Accordingly this tax system departs from the basic principle of taxation.

"The maximum coverage provided by Securities Investor Protection Corporation for securities held in a customer's account is:"

Answers

Answer:

$500,000 USD

Explanation:

The Securities Investor Protection Corporation or SIPC for short, protects against the loss of cash and securities (such as stocks and bonds) up to a limit of $500,000 USD. This cash and assets must be held in a SIPC-member brokerage firm as part of a customer's account and the $500,000 is the limit for both cash and assets, with cash alone having a limit of $250,000 per account owner in the case that the brokerage falls into financial trouble.

Monetary policy has a​ ________ effect on aggregate demand in​ a(n) ________​ economy, and fiscal policy has a​ ________ effect on aggregate demand in​ a(n) ________ economy.

Answers

Answer:

Greater; Open; Greater; Closed

Explanation:

Aggregate demand of economy refers to the total demand for goods and services in an economy at particular period of time.

A closed economy refers to one that has no imports or exports; in order words it is closed from foreign trade with other economies. Thus, fiscal policy would have a greater effect in this economy.

Open economy is the opposite of a closed economy; it allows foreign trade and the aggregate demand of the economy is better influenced by the monetary policy.

Negotiated transfer prices ______. are consistent with decentralization use the expertise of managers in weighing the costs and benefits of the transfer ensure that the supplying division will receive a market price ensure that all common costs will be covered preserve the autonomy of the divisions

Answers

Answer:

1. are consistent with decentralization.

2. use the expertise of managers in weighing the costs and benefits of the transfer.

3. preserve the autonomy of the divisions.

Explanation:

A negotiated transfer prices can be defined as the final price reached between the buyer (consumer) of finished goods and services and the trader (seller) of such goods and services.

Negotiated transfer prices has the following advantages;

1. Negotiated transfer prices are consistent with decentralization.

2. Use the expertise of managers in weighing the costs and benefits of the transfer.

3. They preserve the autonomy of the divisions.

Differing measures, including but not limited to the FASB's choice, of the pension obligation can be based on

Answers

Answer:

All of the following

Explanation:

All of the following includes the circumstances stated below.

i) all years of the service, whether vested or non vested based on the current level of salary as the basic.

ii) only with the vested benefits, which shall be based on current salary level only.

iii) both vested or non vested salaries based on some future salaries.

With the term vested we mean, the employees which already owns some stated percentage of his retirement benefits.

Which of these is not a workforce consideration when conducting a planning self-assessment: A. Have you determined the effects of high absentee rate on your organization? B. What types of workers will shirk their duties during a pandemic? C. Have you addressed succession planning in your pandemic plan? D. Have you considered the impact of any authorized outside employment (i.e., second jobs)

Answers

Answer:

I think it could be c because why is going to plan a pandemic plan but I dont know

Have you addressed succession planning in your pandemic plan? these is not a workforce consideration when conducting a planning self-assessment. Thus, option (c) is correct.

What is workforce?

The workforce is the entire number of people that work for a certain organization or on a particular mission. Workforce Managers just provide data, analytics, and resource management that ensure personnel levels are enough to handle incoming volumes while also fulfilling the demands of associates and the business.

All businesses meet the requirements for succession planning. Employee succession plans are in place to address changes that happen when workforce leave. They have the proper leaders in place to step up in an emergency if important roles become vacant on an unanticipated permanent or temporary basis. The planning succession is not appropriate.

As a result, the Have you addressed succession planning in your pandemic plan? Therefore, option (c) is correct.

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A description of an economy's share of households reflecting different income levels is called income _________.

Answers

Answer: Income distribution

Explanation:

Income distribution is a description of an economy's share of households reflecting different income levels.

Income distribution helps to show how the gross domestic product of an economy is being distributed among the people in the country. Income distribution is also used to know the number of poor or wealthy people in the society.

What is the expected rate of return for a stock that has a beta of 1 if the expected return on the market is 13%?A. 15%.B. More than 15%.C. Cannot be determined without the risk-free rate.

Answers

Answer:

13%

Explanation:

If the beta is one, it means that the stock moves in line with the market, so expected return of the stock would be = 1 x 13% = 13%

The fitting of plotted points to create a smooth progression between pay grades is known as a ________.

Answers

Answer:

Wage curve

Explanation:

This is known as a wage curve. A wage curve is a graphical illustration that shows the present pay rate for different jobs in a pay grade with respect to the ranking of their company. It is done so that Employees are paid well in respect to the skills they have and also the levels of education they have acquired. Through a wage curve a company can also see what other companies in same field pay their employees.

True or false? When creating buyer personas, consider creating a different persona based on job function. Grouping buyer personas together by the goal or challenge they’re trying to overcome won’t be detailed enough to know who you’re talking to.

Answers

Answer:

False

Explanation:

A buyer persona is really a representation of who your ideal customer would be and what characteristics would he/she have. It doesn't really represent anyone specific, but it is a useful tool for developing marketing strategies. If you can identify and develop your buyer persona properly and accurately, it will help you understand your customers' needs and how to satisfy them.

When you develop your buyer persona, you should try to be as more detailed and specific as possible, but you do not need to create one for every job that someone might have. You generally group buyer personas by their common needs, hobbies or goals, e.g. housewives with small children.

What is the manufacturing industry

Answers

Answer:

Manufacturing is the production of products for use or sale, using labor and machines, tools, and chemical or biological processing or formulation. It is the essence of secondary industry. The term may refer to a range of human activity, from handicraft to high-tech, but is most commonly applied to industrial design, in which raw materials from primary industry are transformed into finished goods on a large scale.

The University of Dover and Dover University are bitter cross town rivals. They compete in everything from sports to academics. The schools, because of shrinking enrollment, make an agreement to give all incoming students free tuition for one semester before raising the existing rates the following semester. This action would be considered:______.a) a horizontal restraint violating the Sherman Act.b) a vertical restraint violating the Sherman Act.c) a tying agreement in violation of the Clayton Act.d) price discrimination in violation of the Robinson-Patman Act.

Answers

Answer:

A

Explanation:

A horizontal restraint in violation of the Sherman Act would be this action. As a result, option (A) is the preferable one.

What is the Sherman Antitrust Act of 1890?

The Sherman Antitrust Act of 1890 is an antitrust law from the United States that establishes the principle of unrestricted competition among those involved in commerce. Senator John Sherman, the primary author, is honored by the fact that it was adopted by Congress.

The Sherman Act broadly forbids 1) anticompetitive contracts and 2) unilateral actions that dominate or attempt to monopolize the relevant market. The Act permits private parties harmed by activity that violates the Act to file lawsuits for treble damages in addition to allowing the Department of Justice to file lawsuits to enjoin (i.e., ban) conduct that violates the Act.

Hence, option (A) is accurate.

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