You purchase a share of Boeing stock for $90. One year later, after receiving a dividend of $3, you sell the stock for $92. What was your holding-period return

Answers

Answer 1
Answer:

Answer:

5.56%

Explanation:

Computation for holding-period return

Using this formula

Holding-period return =(Stock sales- Purchased Share + Dividend)/Purchased share

Let plug in the formula

Where,

Stock sales=92

Purchased Share=90

Dividend=3

Holding-period return=(92 - 90 + 3) / 90

Holding-period return=5/90

Holding-period return=0.0556×100

Holding-period return= 5.56%

Therefore the Holding-period return will be 5.56%


Related Questions

"In the economy of Wrexington in 2008, consumption was $5000, exports were $100, government purchases were $900, imports were $200, and investment was $1000. What was Wrexington’s GDP in 2008?"
You are the payables accountant for a medium sized electrical contracting company. You are paying bills with purchase discounts but can't take advantage of them because the cash balance in the checking account is low. You approached your boss with a suggestion that the company borrow money at the bank so you can pay the bills in time to take the discounts. Your boss thinks you are a little crazy to recommend borrowing from the bank (currently charging 6% interest) to take advantage of 1-2% discounts. Write him a memorandum laying out your suggestion and justifying your suggested course of action. Respond to two other student's posts. Use actual numbers in your memo. For example, if you need to borrow money to pay a $10,000 bill that offers terms of 2/10, n/30 and the loan's interest rate is 6%.
The projected cash flow for the next year for Minesuah Inc. is $100,000, and FCF is expected to grow at a constant rate of 6%. If the company's weighted average cost of capital is 11%, what is the value of its operations?
A company holds $40,000 of 7% bonds as a held-to-maturity security. Assuming all prior interest entries have been accounted for, the bondholder's journal entry to record receipt of the semiannual interest payment includes a debit to Cash for $2,800 and a credit to Interest Revenue for $2,800. True False
Through self-guided internet research, the intellectually curious mind can find many examples of potential rewards in business. Add two (2) or more examples of Business Rewards to this list.

Consider this case: Last year, Jackson Tires reported net sales of $80 million and total operating costs (including depreciation) of $52 million. Jackson Tires has $115 million of investor-supplied capital, which has an after-tax cost of 7.5%. If Jackson Tire's tax rate is 40%, how much value did it's management create or lose for the firm during the year? A) 39.38 million

B) 2.66 million

C) 60.38 million

D) 8.18 million

Answers

Answer:

D) 8.18 million

Explanation:

EBIT=80-52

=$28 million

EVA=net operating profit after tax-(capital invested×WACC)

=$28 m (1-0.4)-($115 m ×.075)

=$8.18 million

How much would you need to deposit in an account now in order to have $3000 in the account in 15 years

Answers

Answer:

Results are below.

Explanation:

Giving the following information:

Future value= $3,000

Number of periods= 15 years

I will assume an interest rate of 8% compounded annually.

To calculate the present value (PV), we need to use the following formula:

PV= FV/(1+i)^n

PV= 3,000/1.08^15

PV= $945.73

the following comparative income statement (in thousands of dollars) for two recent fiscal years was adapted from the annual report of speedway motorsports, inc. (trk), owner and operator of several major motor speedways, such as the atlanta, texas, and las vegas motor speedways.

Answers

Income from continuing operations is $61,011   $41,226

What is the Vertical Analysis of Income Statement?

                                          Current Year              Previous Year

Revenues:

Admissions                                 20.28≅ 20.3           20.81 ≅20.8

Event-related revenue                 29.61 ≅ 29.6              30.32≅30.3

NASCAR broadcasting revenue    43.80≅ 43.8             42.82≅42.8

Other operating revenue                6.31  ≅  6.3            6.05≅6.1

Total revenues                                100%                     100%

Expenses and other:

Direct expense of events                 21.01 ≅ 21.0                21.10≅ 21.1

NASCAR event management fees  29.61≅  29.6                26.48≅ 26.5

Other direct expenses                      3.94  ≅  3.9                3.82≅3.8

General and administrative              35.84 ≅ 35.8                 40.08≅40.1

Total expenses and other                 87.72 ≅  87.7               91.49≅ 91.5

Income from continuing operations 12.23%                       8.51%

                             

Vertical Analysis =(Income Statement Item/ Sales )*100

We prepared a comparative income statement for these two years in vertical form, stating each item as a percent of revenues.

                                               Current Year           Previous Year

Revenues:

Admissions                             $100,694                $100,798

Event-related revenue           146,980                     146,849

NASCAR broadcasting revenue 217,469               207,369

Other operating revenue            31,320                    29,293

Total revenues                        $496,463                 $484,309

Expenses and other:

Direct expense of events         $104,303                    $102,196

NASCAR event management fees 133,682                 128,254

Other direct expenses                     19,541                      18,513

General and administrative             177,926                   194,120

Total expenses and other              $435,452               $443,083

Income from continuing operations $61,011                 $41,226

The complete question is Vertical Analysis of Income Statement The following comparative income statement (in thousands of dollars) for two recent fiscal years was adapted from the annual report of Speedway Motorsports, Inc., owner and operator of several major motor speedways, such as the Atlanta, Texas, and Las Vegas Motor Speedways. Current Year Previous Year Revenues: Admissions $100,694 $100,798 Event-related revenue 146,980 146,849 NASCAR broadcasting revenue 217,469 207,369 Other operating revenue 31,320 29,293 Total revenues $496,463 $484,309 Expenses and other: Direct expense of events $104,303 $102,196 NASCAR event management fees 133,682 128,254 Other direct expenses 19,541 18,513 General and administrative 177,926 194,120 Total expenses and other $435,452 $443,083 Income from continuing operations $61,011 $41,226 a. Prepare a comparative income statement for these two years in vertical form, stating each item as a percent of revenues. Enter all amounts as positive numbers. (Note: Due to rounding, amounts may not total 100%). Round your percentages to one decimal place.

To learn more about income statement refer to:

brainly.com/question/16875491

#SPJ4

Final answer:

The comparative income statement for Speedway motorsports Inc. over several fiscal years gives insights into revenue, costs, and profit trends. Increasing revenues coupled with increasing costs might indicate a need for cost efficiency, while a higher rate of profit growth compared to revenues could suggest effective cost management.

Explanation:

The question refers to a comparative income statement of Speedway Motorsports, Inc., a major operator of motor speedways. A comparative income statement compares the income statements of a company across several fiscal years. This can provide valuable insights into how revenues, costs, and profits are developing over time, and thus give indications of how the company's business model is working and where there might be room for improvements.

For example, if Speedway Motorsports' income statements show increasing revenues but also increasing costs, it might indicate that they need to work on cost efficiency. Alternatively, if profits are increasing faster than revenues, it could suggest that their cost management is effective.

Learn more about Comparative Income Statement here:

brainly.com/question/26475911

#SPJ12

In 2005, ABC Company issued $100,000 of 20-year bonds at face value. Ten years later, in 2015, the company retired the bonds early by purchasing them in the open market at $101,000. The entry to record this transaction includes a:

Answers

Answer:

b. debit to Loss on Bond Retirement of $1,000.

Explanation:

Options are "A.  credit to Gain on Bond Retirement of $1,000.  B.  debit to Loss on Bond Retirement of $1,000.  C.  debit to Bonds Payable of $101,000.  D.  credit to Cash of $100,000."

When a bond is retired before maturity a gain or loss may arise. In such case if the price paid to retire the bonds is greater the carrying amount of bonds then the company need to record a loss on retirement in the book. On the other hand if the price paid is less than the carrying amount of the bonds at retirement, then the company records a gain on retirement of bonds.

Use Beneish’s earnings manipulation model to compute the probability that Enronengaged in earnings manipulation for 1998, 1999, and 2000.b. Identify the major reasons for the changes in the probability of earnings manipulationduring the three-year period.

Answers

Answer:

1998, 1999, 2000:

Index value : -4.840, -4.840, -4.840

Days Receivable Index : 0.7243, 1.0546, 1.2562

Gross Margin Index : 0.5640, 0.4513, 0.2463

Asset Quality Index : 0.4293, 0.4300, 0.3116

Sales Growth Index : 1.3594, 1.1446, 2.2413

Depreciation Index : 0.1160, 0.1151, 0.0908

Selling & Admin Expense Index : 0.1962, 0.1650, -0.0716

Leverage Index : -0.2720, -0.2453, -0.3656

Total Accruals to Total Assets: -0.1491, -0.0285, -0.2709

Probability using norms-dist: 1.8% , 1.86%, 8.05%

Explanation:

Beneish's earning manipulation model is used to ascertain the probability of manipulation in the financial data. In this model ratio are calculated and then their index is identified to know an indication of possibility of fraud. In the given scenario the probability of manipulation is too high. The data is assessed through applying beneish model to understand actual financial position of the company.

If the marginal propensity to consume is 0.8, by how much will GDP increase after government spending increases by $200

Answers

Answer:

If disposable income increases by $5 billion and consumer spending ... spending by $100 billion and the marginal propensity to consume is 0.8. ... Suppose investment spending increases by $50 billion, and as a result real GDP increases by $200 billion. ... deliberate changes in taxation and/or government spending.

Explanation: