A stock has an HPR of 9%. The expected dividend yield is 3%.

a. True
b. False

The expected price appreciation is 12%.

a. True
b. False

Answers

Answer 1

Answer:

b. False

Explanation:

holding period return = [dividends received + (ending value - initial value)] / initial value

9% = [dividends received + (ending value - initial value)] / initial value

dividend yield = dividend / ending value

3% = dividend / ending value

price appreciation = (ending value / initial value) - 1

1.12 =  ending value / initial value

ending value = 1.12 initial value ⇒ WE REPLACE IN THE HPR ANN DY FORMULAS

3% = dividend / 0.12 initial value

dividend = 0.36 initial value

9% = [dividends received + (1.12 initial - initial value)] / initial value

9% = dividends received + (0.12 initial value / initial value)

9% = dividends received + 12%

9% = 0.36 initial value + 12%

-3% = 0.36 initial value ⇒ THIS CANNOT BE TRUE, SO THE QUESTION MUST BE FALSE


Related Questions

What is the payback period for a project with an initial investment of $180,000 that provides an annual cash inflow of $40,000 for the first three years and $25,000 per year for years four and five, and $50,000 per year for years six through eight?

Answers

Answer:

It will take 5.2 years to cover the initial investment.

Explanation:

The payback period is the time required to cover the initial investment.

year 1= 40,000 - 180,000= -140,000

Year 2= 40,000 - 140,000= -100,000

Year 3= 40,000 - 100,000= -60,000

Year 4= 25,000 - 60,000= -35,000

Year 5= 25,000 - 35,000= -10,000

Year 6= 50,000 - 10,000= 40,000

To be more accurate:

(10,000/50,000)= 0.2

It will take 5.2 years to cover for the initial investment.

June Corp. sells one product and uses a perpetual inventory system. The beginning inventory consisted of 80 units that cost $20 per unit. During the current month, the company purchased 480 units at $20 each. Sales during the month totaled 360 units for $43 each. What is the number of units in the ending inventory

Answers

Answer: 200 units

Explanation:

Beginning inventory                                      80 units.

Company Purchases                                     480 units

Total                                                                560 units

Sales                                                               (360 units)

Ending Inventory                                            200 units

200 units remain in Ending inventory.

You are analyzing the Statement of Cash flows for Coffey Corporation. You have the following information:

Beginning Cash: Ending Cash: $285
Net cash increase: $102

Calculate the Beginning Cash.

a. $102
b. $153
c. $183
d. $245
e. $387

Answers

Answer:

Therefore the correct option is c. $183

Explanation:

The computation of the beginning cash is shown below:

As we know that

Beginning cash is

= Ending cash - net cash increase

= $285 - $102

= $183

Hence, the beginning cash is $183

Therefore the correct option is c. $183

We simply applied the above formula so that the correct value could come

And, the same is to be considered

Google reportedly offered to buy Groupon for $5 billion to $6 billion in November 2010—an offer that Groupon turned down. Why do you think Google wanted to acquire Groupon, and why do you think Groupon turned Google down?

Answers

Answer:

Google acquisition of Groupon will potential enhance Google strategic value and the traffic of people logging to its site expecting tremendous increase over time. So this appears to be reason for Google to go in for buying Groupon.
Now, the reason for Groupon to turn down Google’s offer of acquisition was most probably that it thought that it can grow faster if it goes alone.

Suppose that the demand curve for chairs in Euroland is given by QD = 800,000 − 6,000P, and that the supply curve is given by QS = 14,500P - 225,000. The equilibrium price is €50.

The government is thinking about imposing a tax of €2.46 on chairs.

The price paid by buyers after the tax is

Answers

Answer:

The price paid by buyers after the tax is €51.74.

Explanation:

QD = 800,000 − 6,000P .................. (1)

QS = 14,500P - 225,000 ................... (2)

P* = equilibrium price = €50

Substituting P* into equation (1) to obtain equilibrium quantity, Q*, we have

Q* = 800,000 − 6,000(50)

Q* = 800,000 - 300,000

Q* = 500,0000

Rewrite equation (1), we have:

6,000P = 800,000 - QD

P = (800,000 / 6,000) - (1 / 6,000)QD

P = 133.333333333333 - 0.000166666666666667QD ............ (3)

Rewrite equation (2), we have:

14,500P = QS + 225,000

P = (1 / 14,500)QS + (225,000 / 14.500)

P = 0.0000689655172413793QS + 15.5172413793103 .......... (4)

With tax of €2.46, equation (4) becomes:

P = 0.0000689655172413793QS + 15.5172413793103 + 2.46

P = 0.0000689655172413793QS + 17.9772413793103

Equating equations (3) and (4), and solve for new equilibrium quantity after tax, QT, we have:

133.333333333333 - 0.000166666666666667QT = 0.0000689655172413793QT + 17.9772413793103

133.333333333333 - 17.9772413793103 = 0.000166666666666667QT + 0.0000689655172413793QT

115.356091954023 = 0.000235632183908046QT

QT = 115.356091954023 / 0.000235632183908046

QT = 489,560

To obtain the price paid by buyers after the tax, PT, we substitute QT = 489,560 for QD is equation (3) as follows

PT = 133.333333333333 - 0.000166666666666667(489,560)

PT = 133.333333333333 - 81.5933333333335

PT = 51.74

Therefore, the price paid by buyers after the tax is €51.74.

George just got a huge promotion at his workplace and wanted to learn about the tax implications and investment opportunities related to the pay hike. He decides to hire a financial service provider. What would be the best way for George to decide on which financial service provider to choose?
A.
by checking the number of employees of the provider
B.
by doing in-depth research on the service provider
C.
by looking into their advertisements and claims
D.
by visiting their office

Answers

Answer:

its B

Explanation:

plato user

Answer:

George just got a huge promotion at his workplace and wanted to learn about the tax implications and investment opportunities related to the pay hike. He decides to hire a financial service provider. What would be the best way for George to decide on which financial service provider to choose?

A.

by checking the number of employees of the provider

B.

by doing in-depth research on the service provider

C.

by looking into their advertisements and claims

D.

by visiting their office

Explanation:

Plato

Beauty Products International happens to be located a few miles from a minimum security prison. To help released prisoners reintegrate into society, BPI hires them in entry-level jobs, provides resources to set up a home, and provides training and education to advance to higher-level jobs as they prove themselves. BPI is using this as an opportunity to
A employ sustainable business practices with regard to its employees and society.
B remove a community constraint in order to increase the company's profitability.
С use a balanced Scorecard approach to integrate their business with the community.
D teach ethical business practices to employees.

Answers

Answer:

A employ sustainable business practices with regard to its employees and society.

Explanation:

Since in the question it is mentioned that for helping released prisoners they hired for the entry level jobs, resources are to be provides also at the same time they provides the training & education

So this represents that have business practices that are sustainable in nature with respect to the employees and society

Therefore the correct option is a.

If there is a high supply for a product, then production would be _____.


decreased

increased

the same

none of the above

Answers

Answer:

the same i think is this correct

Answer:

increased

Explanation:

edg

what is accountancy​

Answers

Accountancy is accountants have long coffee

Use the following information and the indirect method to calculate the net cash provided or used by operating activities: Net income $ 85,800 Depreciation expense 12,500 Gain on sale of land 8,000 Increase in merchandise inventory 2,550 Increase in accounts payable 6,650

Answers

Answer:Cash provided  bY operating activities  = $94,400

Explanation:

Using the indirect method

Net Income                                           $85,800

Add :

Depreciation  expense                         $12,500

Increase in accounts payable                $6,650

Deduct :

Gain on sale of land                               ($8,000)

Increase in inventory                              ($2,550)

Cash provided  bY operating activities              $94,400

Answer:

94,400

Explanation:

Cash flow from operating activities using the indirect method is calculated as follows

Statement of Cash Flow

                                                               Amount          Total

Income                                                    85,800  

Gain on sale of Land                         (8,000)  

Depreciation                                         12,500

Increase in inventory                         (2,550)  

Increase in accounts payable                6,650  

Cash flow from operating activities                            94,400

which item would be a high involvment purchase?
A an apple
B a pen
c. a computer
d a movie ticket

Answers

Answer:c

Explanation: you need to do more then just buy the computer

Instant rewards reinforce desired behavior. Annual raises are ________ effective in reinforcing behavior because there is too much time between the behavior and the reward.
A. more
B. less
C. as
D. never

Answers

Answer:

B. less

Explanation:

As compared with the instant rewards the annual raises are becomes less effective when the behavior is reinforced also it is depend upon the time gap that lies between the behavior and the actual reward

Therefore as per the given situation, the option b is correct

hence, all other options are wrong

So, the same is to be considered

What particular activities are involved in the enterprise's internal operational scope?

Answers

Answer:

A business internal operational scope is related to the dailya activities of the different business divisions that any company has:

Explanation:

The Marketing Department has operations like elaborating market studies, selling, and promoting products.

The Human Resources Department has operations like recruiting and training personnel.

The Operations department has operations related to the production process of the company (for a manufacturing firm)

And the Financial department has operations related with accounting and obtaining funds for the firm.

Investment is an example of which of the following risks?
O Political risk
O Uncontrollable risk
O Pure risk
O Speculative risk

Answers

Answer:

Political risk

Explanation:

Investment is an example of Political risk of the following risks?

Answer:speculative risk

Explanation:

correct answer

What term is used to describe the process of developing the organization's objectives and translating those into courses of action

Answers

Answer:

Planning.

Explanation:

Planning is a term used to describe the process of developing the organization's objectives and translating those into courses of action.

This ultimately implies that, planning is a strategic technique used by organizations to make an aggregate plan for its manufacturing (production) process typically ahead of time, in order to have an idea of the level of goods are to be produced and what resources are required so as to reduce the total cost of production to its barest minimum.

Hence, planning is an attempt to develop organizational objectives, goals, and forecasting of consumer demands within the criteria set by product, production process and distribution methods i.e within the intermediate range of its capacity.

The manufacturing process used to make a wide variety of highly customized products typically in small quantities as small as one is a:_____

Answers

Answer:

"Job Shop" would be the appropriate solution.

Explanation:

A workshop seems to be a small enterprise or organization that makes unique items within one person at the same time. It is a production unit that deals in tailor-made including custom-built components in limited amounts. Under that same production or manufacturing economy, a large number of products are manufactured with smaller quantities requiring a remarkable setup as well as production measures.

A company has a $36 million portfolio with a beta of 1.2. The futures price for a contract on an index is 900. Futures contracts on $250 times the index can be traded. What trade is necessary to reduce beta to 0.9 (how many contracts should be shorted)?

Answers

Answer:

Short of 48 contracts.

Explanation:

What trade is necessary to reduce beta to 0.9?

Number of contract to be shortened = (0.9 - 1.2) * 36,000,000 / (900*$250)

= -0.3*36,000,000 / 225,000

= -10,800,000 / 225,000

= -48

As it is of negative value, it should be short of 48 contracts.

Explain the imortance of feedback in the communication process.(3marks)

Answers

Feedback gives somebody another point of view other than there own allowing them to improve themselves

Will mark Brainly

What does CPM imply, and what is the software package that helps in assessing your online promotional tool?

CPM implies the expenditure invested in reaching (___) individuals. A marketing (___) is a software package that helps you calculate the vital statistics about your marketing promotion campaign.


First blank choices are

10,000
100
1,000

Second blank choices are

dashboard
reach
service

Answers

Answer:

1,000 dashboard

Explanation:

M is 1,000

A dashboard is a software package

Answer:

1,000

dashboard

Explanation:

took on plato

Gene, age 34, and Beth, age 32, have been married for nine years. Gene, who is a college student, works part-time and earns $1,500. Beth is a high school teacher and earns a salary of $34,000.

Required:
a. What is the maximum amount Gene can contribute to an IRA in 2016?
b. What is the maximum amount Beth can contribute to an IRA in 2016?

Answers

Answer:

a. $5,500

b. $5,500

Explanation:

During 2016, the maximum contribution per person was $5,500 ($6,500 if older than 50) or 100% of taxable income, whichever is lower. Since both spouses work, they can both contribute to their own IRA accounts. Assuming that they file their taxes jointly, then they can both contribute the maximum amount (it doesn't matter who earns more money) since their combined AGI is higher than $11,000.

Shiny Industries producers of crab meat can issue perpetual preferred stock at a price of $31.86 per share. The stock would pay a constant annual dividend of $4.85 per share. What is the company's return on preferred stock (r)

Answers

Answer:

the return on the  preferred stock is 15.22%

Explanation:

The computation of the return on the preferred stock is shown below:

Return on Preferred Stock is

= Constant annual Dividend ÷  Price × 100

= $4.85 ÷ $31.86 × 100

= 15.22%

Hence, the return on the  preferred stock is 15.22%

We simply applied the above formula so that the correct value could come

And, the same is to be considered

                                     

A simple supply curve shows that an increase in the price of a good will cause the quantity supplied to:

Answers

Answer:

This question is incomplete, the options are missing. The options are the following:

a) Decrease.

b) Increase.

c) Remain constant.

d) Fluctuate randomly around its equilibrium value.

And the correct answer is the option B: Increase.

Explanation:

To begin with, in the microeconomics theory the supply curve is known for being the one who shows what quantity will be supplied by the offerents given a particular amount of price that is already establish by the interaction between the forces of the market given a perfect competitive market as an example. So in that graphic the supply curve will always have a positive slope and that is due to the law of supply that establishes that there is a direct relationship between the price a good and its supply, so that means that if the price a good increases its quantity supplied will increase as well with it.

What are accountants most likely involved in as part of their daily activities within an organization?
A.
Preparing profit and loss statements.
B.
Working on distribution-related logistics.
C.
Contacting potential new retailers.
D.
Working on production schedules and shifts.

Answers

Answer: A

Hope this helps!!!

Answer:

What are accountants most likely involved in as part of their daily activities within an organization?

A.

Preparing profit and loss statements.

B.

Working on distribution-related logistics.

C.

Contacting potential new retailers.

D.

Working on production schedules and shifts.

Explanation:

Plato

The book value per share of stock is the amount of money an investor would have to pay to purchase a share of stock in an open market. This statement is

Answers

Answer:

False

Explanation:

The book value per share of stock can be defined as a measure of the total amount of value associated with a net asset that an investor is entitled to when he or she buys a share of stock.

The book value per share of stock is a ratio of the equity gotten by an investor to the amount of outstanding shares.

Hence, the book value per share of stock is not the amount of money an investor would have to pay to purchase a share of stock in an open market. This statement is completely false.

Ryan received land and a building from Thom as a gift. Thom's adjusted basis and the fair market value at the date of the gift are as follows:

Asset Adjusted Basis FMV

Land $40,000 $35,000
Building 110,000 90,000

Thom paid 8,000 gift tax was paid on the transfer.

Required:
a. Determine Gerald’s adjusted basis for the land and building.
b. Assume instead that the fair market value of the land was $87,000 and that of the building was $120,000. Determine Gerald’s adjusted basis for the land and building.

Answers

Answer:

a. Determine Gerald’s adjusted basis for the land and building.

Gerald's adjusted basis for gains:

Land = $40,000Building = $110,000

Gerald's adjusted basis for loss:

Land = $35,000Building = $90,000

The higher the basis, capital gains will be lower. But a lower adjusted basis for loss also decreases the amount of capital losses that can be reported if the asset is sold at a lower price.

b. Assume instead that the fair market value of the land was $87,000 and that of the building was $120,000. Determine Gerald’s adjusted basis for the land and building.

Since the fair market value of the gift is higher than the adjusted basis, then Gerald's adjusted basis will be equal to the FMV (for gains or losses):

Land = $87,000Building = $120,000

A bank quotes an interest rate of 5.5% per annum with quarterly (four times a year) compounding. What is the equivalent rate with (a) continuous compounding and (b) semi annual compounding

Answers

Answer:

continuous compounding rate  = 5.61 %

semi annual compounding rate =  5.34 %

Explanation:

The effective interest rate is also known as the continuous compounding rate. This is the interest amount that if compounded once a year, would give us the same results as interest per period compounded  a number of times a year.

continuous compounding rate :

5.5% Shift NOM %

4 P/YR

SHIFT EFF % =  5.61 %

semi annual compounding :

SHIFT EFF % =  5.61 %

2 P/YR

SHIFT NOM % =  5.34 %

Unemployment is often called a lagging or trailing indicator because unemployment tends to rise some time after the economy begins to slow down, and unemployment begins to fall again after the economy begins to rebound. Unemployment trails GDP because:

A) laws prevent firms from reducing employment during recessions and during expansions people are still collecting unemployment insurance.
B) firms reduce hours before laying off when the economy is in recession, and increase hours before hiring when the economy expands.
C) when the economy is in a recession, firms do not want to pay unemployment insurance, and during expansions they do not want the added cost of new employees.
D) the labor force increases during recessions and shrinks during expansions.

Answers

Answer:

B) firms reduce hours before laying off when the economy is in recession, and increase hours before hiring when the economy expands.

Explanation:

In the case when the output falls so the workers would not be laid off in a direct manner. In the first time the labor would be decreased so that the demand could be analyzed. The same would be happen in that case also where the growth picked up

Therefore in the given case, the option B is correct

And the other options are wrong

Project L costs $70,000, its expected cash inflows are $16,000 per year for 8 years, and its WACC is 13%. What is the project's discounted payback?

Answers

Answer:

6.89 years

Explanation:

The discounted payback period can be calculated by using the following table

Year        Cash flows                PV(13%)             Cumulative Cash flows

0               (70000)                    (70000)                           (70000)

1           16000                    14159.29                       (55840.71)

2           16000                    12530.35                      (43310.36)

3           16000                       11088.80                      (32221.56)

4           16000                        9813.10                        (22408.46)

5           16000                        8684.16                        (13724.30)

6           16000                         7685.10                       (6039.20)

7           16000                          6800.97                         761.77

8           16000                          6018.56                       6780.33

Discounted Payback = 6 years + 6039/ 6801

Discounted Payback = 6.89 years

Curtis invests $700,000 in a city of Athens bond that pays 9.00 percent interest. Alternatively, Curtis could have invested the $700,000 in a bond recently issued by Initech, Incorporated that pays 11.00 percent interest with similar risk as the city of Athens bond. Assume that Curtis's marginal tax rate is 24 percent. How much implicit tax would Curtis pay on the city of Athens bond?

Answers

Answer:

$14,000

Explanation:

Calculation for How much implicit tax would Curtis pay on the city of Athens bond

Using this formula

Implicit tax=(Amount invested*Initech Interest rate)- (Amount invested* Athens bond Interest rate)

Let plug in the formula

Implicit tax=(11%*$700,000)- (9%*$700,000)

Implicit tax=$77,000-$63,000

Implicit tax=$14,000

Therefore the implicit tax that Curtis would pay on the city of Athens bond will be $14,000

Crane Corp. had total variable costs of $281,400, total fixed costs of $130,350, and total revenues of $420,000. Compute the required sales in dollars to break even.

Answers

Answer:required sales to break even=$395,000

Explanation:

Break Even Sales = Fixed Expenses / Contribution Margin

  But

Fixed  Costs /Expenses  is given as  $130,350

And

Contribution Margin Ratio  is solved as  (Total Revenue - Variable Cost) / Total Revenue x 100  

= ($420,000-$281,400)/ $420,000 x 100

=0.33 x 100

= 33%

Break Even Sales = $130,350/33%

= $395,000

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