What is the annual return on this investment

Assignment Help Accounting Basics
Reference no: EM133045942

Question -

a. You purchase a stock for $9,000 and collect $400 at the end of each year in dividends. You sell the stock for $11,300 after four years. What was the annual return on your $9,000 investment?

b. You purchase a building for $900,000, collect annual rent (after expenses) of $100,000, and sell the building for $1,000,000 after three years. What is the annual return on this investment?

c. You buy a stock for $1,000 and expect to sell it for $800 after four years but also expect to collect dividends of $120 a year. Calculate the return on this investment and prove that it is less than 9 percent.

Reference no: EM133045942

Questions Cloud

Competitive advantage through the use of it : Find an example within the last six months of a real-world organization gaining a competitive advantage through IT and describe the advantage gained.
How much do you gain or lose as of the close : Suppose that on October 24 you buy 7 March gold futures contracts for $325 per ounce. How much do you gain or lose as of the close
The importance of disagreements : What is this article about? Summarize the article. Sometimes, journal articles are very complex and not written for a lay audience. We just want skim through th
How much of the expenses will max have to pay : Max, age 28, is insured under an individual medical expense policy part of a preferred provider organization (PPO) network. The policy has a calendar-year deduc
What is the annual return on this investment : You purchase a building for $900,000, collect annual rent of $100,000, and sell the building for $1,000,000 after three years. What is the annual return
Aspects of monte carlo simulation processes : -Explain how Monte Carlo simulation is used by enterprises in the real world. Provide a specific example from your own line of work, or a line of work that you
The founder dilemma by noam wasserman : 1. Identify three things that stood out about the scenario and why.
Major arguments in favor of approach : 1. Social InsuranceWhat have you heard about income redistribution programs and how do you feel about the concept?
Calculate accounting rate of return : Wildhorse Corp. management is considering purchasing a machine that will cost $117,250. Calculate accounting rate of return

Reviews

Write a Review

Accounting Basics Questions & Answers

  How does the specific authorization and management

How does the specific authorization and management oversight of source of capital processes affect internal controls?

  Determine the cost per equivalent unit of direct material

Annapolis uses the weighted-average process costing method. Use this information to determine the cost per equivalent unit of direct material for month of March

  Calculate the budgeted manufacturing overhead rate

Budgeted manufacturing overhead costs $4,000,000, Calculate the budgeted manufacturing overhead rate. Calculate the manufacturing overhead allocated during 2008

  Prepare a income statement for howell corporation

Prepare a income statement for 2019 for Howell Corporation that is presented in accordance with IFRS (including format and terminology). Howell Corporation has.

  Average collection period in days

In 2010, Drew Gooden Company has net credit sales of $1,600,000 for the year. It had a beginning accounts receivable (net) balance of $101,000 and an ending accounts receivable (net) balance of $107,000.

  Why did stay loyal to the product

Identify a specific consumer product that you or your family have used for quite some time. This might be a branded smartphone,a favorite fast food

  Why is inventory management so important what are some

1. shrinkage is a major factor for retail operations and has a huge negative impact on profits. discuss the various

  What do think about the internet

What do you think about The Internet? How is The Internet influencing people, businesses, society, communication, and the world?

  Differentiate between each of the given pairs of terms

Differentiate between each of the following pairs of terms.

  Prepare journal entries to record all of the above events

On 16 March 2019, Delilah Ltd was incorporated and a prospectus was issued inviting applications for 150,000 shares at an issue price of $7, payable as follows.

  Locate the 2009 financial statements for lockheed martin

locate the 2009 financial statements for lockheed martin corporation on the internet. reconstruct the companys adjusted

  Which alternative you choose and why

An 80% LTV that is fully amortized over 20 years with 8% interest rate and subject to 3 points. Which alternative you choose? Why

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