User Account

All Pages

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 much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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