Answer:
ROI = 20.90%
Explanation:
Operating Income:
= Operating Income of Retail Division + Operating Income of Wholesale Division
= $7,500,000 + $4,000,000
= $11,500,000
Operating Assets:
= Operating Assets of Retail Division + Operating Assets of Wholesale Division
= $37,500,000 + $17,500,000
= $55,000,000
ROI = (Operating Income ÷ Operating Assets) × 100
ROI = ($11,500,000 ÷ $55,000,000) × 100
ROI = 20.90%
Answer:
10.00%
Explanation:
Calculation for what will be your rate of return after 1 year if Microsoft is selling at $24
Using this formula
Rate of return = (Current price - Initial price ) /Current price *margin
Let plug in the formula
Rate of return=($25 per share-$24)/$25 per share*0.40
Rate of return=$1/10
Rate of return=0.1*100
Rate of return=10.00%
Therefore what will be your rate of return after 1 year if Microsoft is selling at $24 is 10.00%
In this short sale, the initial selling price of the shares was $15,000. A 40% margin was posted, amounting to $6,000. After the price dropped to $24 per share, the shares were bought back for $14,400. The profit gained, which is $600, is divided by the initial investment to obtain a rate of return of 10%.
In a short sale, the initial transaction involves selling a borrowed stock in the hopes of buying it back later at a lower price to earn a profit. The rate of return in a short sale is calculated using the profit earned from the short sale divided by the amount of capital invested originally.
First, we need to calculate how much the total value of the shares was at the time of selling short, so that’s 600 shares × $25/share = $15,000. You posted a 40% margin for the short sale, which means you committed $6,000 (40% of $15,000).
After one year, the Microsoft stock drops to $24 per share. At that price, you can buy back all 600 shares for 600 shares × $24/share = $14,400. The difference between the amount you sold the shares for and what you bought them back at is $15,000 - $14,400 = $600.
Now to calculate the rate of return, take the profit ($600) and divide by the amount of capital originally committed to the transaction ($6,000), so the rate of return is $600 / $6,000 = 0.10 or 10%.
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Answer:
The price of the preferred stock should be $ 50.
Explanation:
Price of the issued preferred stock: semianual dividend of $2 per share.
Annual discount rate: 8%
With these details we are able to perfom the following calculations:
Annual Preferred Dividend = Semi Annual Dividend x 2
= $2.00 x 2 = $4.00 per share
Then we know that the Price of Preferred Stock = Annual Dividend per share on Preferred Stock / Discount Rate
So this is= $4.00 per share / 0.08
= $50.00 per share. Price of the preferred stock
Answer: Cost management, profitability, return on assets, competitive position and corporate social policy
Explanation:
Supply has the potential to contribute to cost management, profitability, return on assets, competitive position and corporate social policy.
Supply is defined as the amount of goods or services that a supplier is willing to offer for sale at a particular price and at a certain period. The amount of goods offered can determine the revenue generated and hence the profit made.
Answer:
realized loss = -20.31%
Explanation:
stock price ¥3,150, total operation ¥315,000
in US dollars = ¥315,000 x $0.00952 = $2,998.80
current market price ¥3,465, total operation ¥346,500
in US dollars = ¥346,500 / ¥145 = $2,389.66
realized loss = (current value in US dollars - initial investment) / initial investment = ($2,389.66 - $2,998.80) / $2,998.80 = -20.31%
Even though the stock price increased significantly (10%), the yen depreciated against the dollar even more (-38%)
The adjusting entry should Fred make on December 31, the end of the accounting period is: Debit Insurance Expense $6,000; Credit Prepaid Insurance $6,000.
Based on the information given the appropriate journal entry to record the transaction is:
Fred company adjusting entry
Debit Insurance Expense $6,000
Credit Prepaid Insurance $6,000
( $2,000 x 3 = $6,000)
Inconclusion the adjusting entry should Fred make on December 31, the end of the accounting period is: Debit Insurance Expense $6,000; Credit Prepaid Insurance $6,000.
Learn more about journal entry here:brainly.com/question/14279491
Answer:
The adjusting entry Fred should make on December 31, the end of the accounting period:
b. Debit : Insurance Expense 6,000 Credit: Prepaid Insurance 6,000
Explanation:
On October 1, Fred Company paid $48,000 for a two-year insurance policy, ($2,000 per month)
From October 1 to December 31, Fred Company has used the insurance for 3 months.
Insurance Expense = $2,000 x 3 = $6,000
The adjusting entry Fred should make on December 31, the end of the accounting period:
Debit Insurance Expense $6,000
Credit Prepaid Insurance $6,000
Answer:
Varga should recognize $4,000 as revenue in 2016.
Explanation:
As the cash received in advance is recorded as unearned revenue which is a liability for the Varga Tech Services because they did not provide the services yet. On December 31, Eight months have passed and services for these month has been provided. So the revenue of 8 month months of 2016 will be recognized and recorded at year end.
Serive Contract = $6,000 for 12 months
Revenue Recognized in 2016 = $6,000 x 8/12 = $4,000