What is approximate real rate of return on investment

Assignment Help Financial Management
Reference no: EM131948493

1. Last year, you purchased a stock at a price of $60.00 a share. Over the course of the year, you received $3.20 in dividends and inflation averaged 2.6 percent. Today, you sold your shares for $65.90 a share. What is your approximate real rate of return on this investment?

7.2 percent

12.4 percent

15.2 percent

17.8 percent

12.6 percent

2. Which ONE of the following would increase the ICO?

A. A decrease in an Opportunity Cost

B. A decrease in the value of a replaced asset

C. A Sunk Cost

D. A decrease in NWC

Reference no: EM131948493

Questions Cloud

Compute the present value of perpetuity : Compute the present value of a perpetuity that pays $791.13 annually, with the first cash flow occurring today,
Find the present value and the compound discount : Find the present value and the compound discount of
Discuss the driving and restraining forces : Discuss the driving (positive) and restraining (negative) forces related to a specific organization in an industry for one of the following:
Financials and click on income statement : Scroll all the way down to “Financials” and click on “Income Statement.” Write a one-paragraph summary of how the company is doing.
What is approximate real rate of return on investment : You purchased a stock at a price of $60.00 a share. What is your approximate real rate of return on this investment?
Healthcare costs continue to rise at alarming rates : Healthcare costs continue to rise at alarming rates.
Consequence of change in ricalta capital structure : Which of the following will be a consequence of the change in Ricalta’s capital structure??
Motivate large group of employees to exceptional performace : how could the health care financial manager help to motivate a large group of employees to exceptional performance?
Corporate requirements for distribution to be treated : Which of the following correctly describes the corporate requirements for a distribution to be treated as a dividend?

Reviews

Write a Review

Financial Management Questions & Answers

  Explain fundamental principles underlying study of finance

Explain five fundamental principles underlying the study of finance.

  Issued a corporate bond with face value

Benge Automotive issued a corporate bond with a face value of $1,000, with a 10% annual coupon rate paid semiannually. The bond matures in 12 years and sells at a price of $1,080. What is the component cost of debt for use in the WACC calculation? A ..

  Companies to achieve competitive advantage

Why is it important for companies to achieve competitive advantage?

  Calculate net present value-modified internal rate of return

Calculate the Net Present Value (NPV), the Modified Internal Rate of Return (MIRR), the Profitability Index and the Discounted Payback for this project.

  What were the dividend yield and the capital gains yield

Nancy Cotton bought Nu Talk for $15 per share. One year later, Nancy sold the stock for $21 per share, just after she received a $0.90 cash dividend from the company. What total return did Nancy earn? What were the dividend yield and the capital gain..

  The foregoing transactions using accounting equation

Here is a list of transactions for a newly-formed corporation that provides professional tax services: Organized the business as a professional corporation, investing $28,000 cash in the business and issuing 1,000 shares of no-par common stock. Recei..

  Standard discount rate for evaluating the npv

After asking around, you find out that the standard discount rate for evaluating the NPV of farming project is 6%.

  Firm cash flow statement for the year just ended

Statement of Cash Flows You have just been hired as a financial analyst for Basel Industries. Unfortunately, company headquarters (where all of the firm's records are kept) has been destroyed by fire. So, your first job will be to recreate the firm's..

  Combination of demographic traits and mediagraphics

The step in the market segmentation process in which marketers employ a combination of demographic traits, mediagraphics, psychographics,

  What is the duration of bond with three years to maturity

What is the duration of a bond with three years to maturity and a coupon of 7.7 percent paid annually if the bond sells at par?

  Management is competent at running the business

Assume you are an internal OD consultant from this company and you are responsible for interpreting these results. "-27% management is competent at running the business. -25% management delivers on its promises. What items and/or factors would you be..

  Why is terminal cap rate applied to noi

When estimating the reversion value in the year of sale, why is the terminal cap rate applied to NOI for the year after the holding period?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd