Effective annual rate

Assignment Help Financial Management
Reference no: EM131014210

Tom purchased 100 shares of Dalia Co. stock at a price of $120.32 four months ago. He sold all stocks today for $125.08. During the year the stock paid dividends of $6.48 per share. What is Tom’s effective annual rate?

Round the answers to two decimal places in percentage form

Reference no: EM131014210

Questions Cloud

What is the expected level of sales for the next year : Sharpe Knife Company expects sales next year to be $1,710,000 if the economy is strong, $905,000 if the economy is steady, and $710,000 if the economy is weak. Mr. Sharpe believes there is a 40 percent probability the economy will be strong, a 35 per..
Determining the analysis of financial statements : Do the statements, notes, and schedules in the financial section present the information required by the GASB? Are Total columns provided in the basic financial statements and schedules for the primary government and the reporting entity? If so, a..
Explain what has changed and what has been confirmed : Evaluate your original points against your present learning about Priority and Unwrapping Standards as well as the Formative Assessments processes. Explain what has changed and what has been confirmed in your thinking from your first paper
Determine the total two-year interest cost under each plan : Boatler Used Cadillac Co. requires $1,030,000 in financing over the next two years. The firm can borrow the funds for two years at 10 percent interest per year.  Determine the total two-year interest cost under each plan. Short-term variable-rate pla..
Effective annual rate : Tom purchased 100 shares of Dalia Co. stock at a price of $120.32 four months ago. He sold all stocks today for $125.08. During the year the stock paid dividends of $6.48 per share. What is Tom’s effective annual rate?
Construct the weak form of linear equation : Construct the weak form of the linear equation. Are the boundary conditions "essential" or "natural" and euler-Bernoulli-von Kaman nonlinear theory of beams
Inventory financing cost : Bambino Sporting Goods makes baseball gloves that are very popular in the spring and early summer season. If seasonal production is used, it is assumed that inventory will directly match sales for each month and there will be no inventory buildup. Wh..
Workers react to socially responsible behavior by business : John Blue has started his own Internet business, Blueways.com, offering online ordering of refurbished computer parts. His business has experienced a slower than usual start due to higher than expected costs for capital resources.
What are the effects of increasing the sample size : Write a careful description comparing the three bootstrap distributions and also comparing them with the exact sampling distribution. What are the effects of increasing the sample size?

Reviews

Write a Review

 

Financial Management Questions & Answers

  Equity fund with an expected risk premium

You manage an equity fund with an expected risk premium of 11.4% and a standard deviation of 28%. The rate on Treasury bills is 5.2%. Your client chooses to invest $50,000 of her portfolio in your equity fund and $150,000 in a T-bill money market fun..

  What is the dividend yield and the capital gains yield

Normal tea companies grow at a constant rate of 5%. However, Taya's Tea Company has tested a brand new tea that will lead to significant growth. The current dividend is $3.0, but over the next two years it will grow by 25%. What is the dividend yield..

  How often does the company update the general ledger

How often does the company update the general ledger and what is the process for preparing budgets using the ERP system?

  Thinking about the potential size of the market

Costco is going to open a urben Costco, in thinking about the potential size of the market, Costco believes that critical factors are the size of the population, portion of the population that will visit the store and how much they will spend. Your w..

  The cost of debt is lower than the costs of stocks

The cost of debt is lower than the costs of stocks. Cost of Preferred stock is higher than the cost of common stocks.

  What annual rate of return must the organization earn

An organization plans to save $10,000 per month for a new building. The organization also will invest $15,000 it already has in reserves. (Hint: When a problem involves monthly payments, assume monthly compounding.) What annual rate of return must th..

  Equity loans typically have payments than automobile loans

Interest rates on automobile loans tend to be higher than rates on home equity loans. Home equity loans typically have more payments than automobile loans.

  Blaster corporation manufactures hiking boots

Blaster Corporation manufactures hiking boots. For the coming year, the company has budgeted the following costs for the production and sale of 30,000 pairs of boots:

  What will be your overall gain or loss

Assume you sell 100 shares of Larson Corporation short at $61. You also buy a 60 call option for $3.5 to protect against the stock price going up. If the stock ends up at $80, what will be your overall gain or loss? If the stock ends up at $40, what ..

  What is NOPAT-What was average or effective tax rate

What is “NOPAT?” For the remaining questions in this assignment, base your answers on the following information for Joe’s Fly-By-Night Oil Company, whose latest income statement and balance sheet are shown below. Stock price on Dec 31, 2014…$60.00 Nu..

  Chicken-plucking machine economically worthless

High electricity costs have made Farmer Corporation’s chicken-plucking machine economically worthless. Only two machines are available to replace it. The International Plucking Machine (IPM) model is available only on a lease basis. How much debt is ..

  Required return on investment

Perpetuity Values/ Bob's Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $700 per year forever. If the required return on this investment is 12 percent, how much will you pay for the policy?

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