BUSINESS COLLEGE

ne year ago, a U.S. investor converted dollars to yen and purchased 100 shares of stock in a Japanese company at a price of 3,150 yen per share. The stock's total purchase cost was 315,000 yen. At the time of purchase, in the currency market 1 yen equaled $0.00952. Today, the stock is selling at a price of 3,465 yen per share, and in the currency market $1 equals 145 yen. The stock does not pay a dividend. If the investor were to sell the stock today and convert the proceeds back to dollars, what would be his realized return on his initial dollar investment from holding the stock

Answers

Answer 1

Answer:

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%)

Related Questions

Klean Fiber Company is the creator of Y-Go, a technology that weaves silver into its fabrics to kill bacteria and odor on clothing while managing heat. Y-Go has become very popular in undergarments for sports activities. Operating at capacity, the company can produce 1,031,000 Y-Go undergarments a year. The per unit and the total costs for an individual garment when the company operates at full capacity are as follows. Per Undergarment Total Direct materials $2.04 $2,103,240 Direct labor 0.40 412,400 Variable manufacturing overhead 1.04 1,072,240 Fixed manufacturing overhead 1.44 1,484,640 Variable selling expenses 0.34 350,540 Totals $5.26 $5,423,060The U.S. Army has approached Klean Fiber and expressed an interest in purchasing 250,500 Y-Go undergarments for soldiers in extremely warm climates. The Army would pay the unit cost for direct materials, direct labor, and variable manufacturing overhead costs. In addition, the Army has agreed to pay an additional $1.02 per undergarment to cover all other costs and provide a profit. Presently, Klean Fiber is operating at 70% capacity and does not have any other potential buyers for Y-Go. If Klean Fiber accepts the Army's offer, it will not incur any variable selling expenses related to this order.Required:Prepare an incremental analysis for the Klean Fiber.
ou believe that stock prices reflect all information that can be derived by examining market trading data such as the history of past stock prices, trading volume, or short interest, but you do not believe stock prices reflect all publicly available and inside information. You are a proponent of the ____________ form of the EMH.
The Work-in-Process inventory account of a manufacturing firm shows a balance of $4,090 at the end of an accounting period. The job cost sheets of two uncompleted jobs show charges of $570 and $370 for materials, and charges of $600 and $800 for direct labor. From this information, it appears that the company is using a predetermined overhead rate, as a percentage of direct labor costs, of: Multiple Choice 43%.
Retail managers can use ________ to determine which inventory items require the most attention. a. EOQ modeling b. CPS scheduling c. Breakeven analysis d. ABC analysis
A company has the choice of either selling 600 defective units as scrap or rebuilding them. the company could sell the defective units as they are for $2.00 per unit. alternatively, it could rebuild them with incremental costs of $0.60 per unit for materials, $1.00 per unit for labor, and $0.80 per unit for overhead, and then sell the rebuilt units for $5.00 each. what is the amount of incremental revenue from rebuilding?

During its first year of operations, the McCollum Corporation entered into the following transactions relating to shareholders’ equity. The corporation was authorized to issue 100,000,060 common shares, $1 par per share. Required: Prepare the appropriate journal entries to record each transaction. Jan. 9 Issued 50,000,000 common shares for $18 per share. Mar. 11 Issued 4,500 shares in exchange for custom-made equipment. McCollum’s shares have traded recently on the stock exchange at $18 per share. Part B A new staff accountant for the McCollum Corporation recorded the following journal entries during the second year of operations. McCollum retires shares that it reacquires (restores their status to that of authorized but unissued shares). Date General Journal Debit Credit Jan. 12 Land 5,000,000 Paid-in capital—donation of land 5,000,000 Sept. 1 Common stock 2,000,000 Retained earnings 44,000,000 Cash 46,000,000 Dec. 1 Cash 24,000,000 Common stock 1,000,000 Gain on sale of previously issued shares 23,000,000

Answers

Answer:

cash 900,000,000 debit

common stock 50,000,000 credit

additional paid-in 850,000,000 credit

--- Jan 9th issuance ---

Equipment 81,000 debit

Common Stock 4,500 credit

Addtional paid-in 76,500 credit

--- March 11th issuance ---

Equity at end of Year 1:

common stock 50,004,500 credit

additional paid-in 850,076,500 credit

Explanation:

cash proceeds: 50 millions x 18 dolllars = 900 millions

face value: 50 millions x 1 dollars = 50 million

additional paid-in 850 millions

Equipment: 4,500 x 18 = 81,000

face value 4,500 x 1 = 4,500

addiional 76,500

Equity at year-end will be the sum of both

Final answer:

The appropriate journal entries for the transactions related to shareholders' equity are provided for the first and second year of operations.

Explanation:

To record the transactions related to shareholders' equity for the first year of operations, the appropriate journal entries are as follows:

January 9: Debit Cash for $900,000,000 and Credit Common Stock for $50,000,000 and Paid-in Capital in Excess of Par for $850,000,000
March 11: Debit Custom-Made Equipment for $81,000 and Credit Common Stock for $81,000

For the second year of operations, the journal entries recorded by the new staff accountant are:

January 12: Debit Land for $5,000,000 and Credit Paid-in Capital—Donation of Land for $5,000,000
September 1: Debit Common Stock for $2,000,000, Debit Retained Earnings for $44,000,000, and Credit Cash for $46,000,000
December 1: Debit Cash for $24,000,000, Credit Common Stock for $1,000,000, and Credit Gain on Sale of Previously Issued Shares for $23,000,000

Learn more about Journal entries here:

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LO 4.2Which document lists the total direct labor used in a specific job?job cost sheet
purchase order
employee time ticket
receiving document

Answers

Answer:

job cost sheet

Explanation:

The job cost sheet refers to the statement used to report production costs and is developed by businesses using a work-order charging system to measure and assign costs of goods and services.

is the responsibility of the accounts department to chart all production costs (primary supplies, direct labor and overhead production) on the work cost sheet. For each worker, a separate job expense sheet is arranged.

Job cost sheet not gets utilized for paying work expenses only, it's also component of the reporting records of the business. It is also used in the system account as something of a subordinate ledger to the project as it includes all the information about the work being done.

Local Co. has sales of $ 10.7 million and cost of sales of $ 5.9 million. Its selling, general and administrative expenses are $ 550 comma 000 and its research and development is $ 1.2 million. It has annual depreciation charges of $ 1.4 million and a tax rate of 35 %. a. What is Local's gross margin? b. What is Local's operating margin? c. What is Local's net profit margin?

Answers

Explanation:

The computation is shown below:

a. The gross margin is

Gross margin = (Sales revenues - Cost of sales) ÷ (Sales revenues) × 100

= ($10.7 million - $5.9 million) ÷ ($10.7 million) × 100

= 45%

b. The local operating margin is

= (Operating income ÷ Sales) × 100

where,

Operating income is

= (Sales - cost of sales - selling, general & administrative expenses - research & development - Depreciation & Amortization) ÷ (Sales revenue) × 100

= ($10.7 million - $5.9 million - $0.55 million - $1.2 million - $1.4 million) ÷ ($10.7 million) × 100

= ($1.65 million) ÷ ($10.7 million) × 100

= 15.42%

c. Net profit margin

= (Net profit ÷ Sales) × 100

where,

= (Sales - cost of sales - selling, general & administrative expenses - research & development - Depreciation & Amortization) × (1 - tax rate) ÷ (Sales revenue) × 100

= ($10.7 million - $5.9 million - $0.55 million - $1.2 million - $1.4 million) × (1 - 0.35) ÷ ($10.7 million) × 100

= ($1.0725 million) ÷ ($10.7 million) × 100

= 10.02%

20. WACC and NPV [LO3, 5] Sommer, Inc., is considering a project that will result in initial aftertax cash savings of $2.3 million at the end of the first year, and these
savings will grow at a rate of 2 percent per year indefinitely. The firm has a target
4.6 percent. The cost-saving proposal is somewhat riskier than the usual project the
firm undertakes; management uses the subjective approach and applies an adjustment factor of +3 percent to the cost of capital for such risky projects. Under what
circumstances should the company take on the project?

Answers

Mark Brainliest please

Sommer Inc is considering the new project, and yet we have to calculate under what circumstances the company have to take on the project. In order to assess the project, we need to compute the break-even cost such as the present value of future cash flows and calculate the WACC weighted cost of capital. It measures the weighted cost of equity and the after tax cost of debt. The following information are given: Debt to equity ratio = 0.90 Cost of equity = 13% After-tax cost of debt = 4.8% After-tax cost of savings = $2.7 million Debt to equity ratio = Debt / Equity = 0.90 Therefore, Value of firm = value of debt + value of equity Value of firm = 0.90E + E Value of firm

See the calculation of WACC as attachment

Last year the imaginary nation of Freedonia had a population of 2,700 and real GDP of 16,200,000. This year it had a population of 2,500 and real GDP of 14,640,000. What was the growth rate of real GDP per person between last year and this year?

Answers

Answer:

-2.4%

Explanation:

The GDP per person of the nation of Freedonia for the current and last year, respectively, are:

$GDP_C = (14,640,000)/(2,500)=5,856\nGDP_L = (16,200,000)/(2,700)=6,000$

The growth rate (R) between this year and last year is given by:

$R=(GDP_C-GDP_L)/(GDP_L)\nR=(5,856-6,000)/(6,000)\nR=-0.024 = -2.4\%$

The growth rate of real GDP per person was -2.4%.

Your order is supposed to be delivered between 5PM-6PM, and it’s now 5:45PM. You’re stuck in a long line waiting to check out. In this situation, you will be late delivering the order. Provide an example of the text message you would send to the member.

Answers

Explanation:

If I am stuck in a long line waiting to check out and I was supposed to deliver the parcel between 5 PM to 6 PM, then I will text the receiver telling him about my problem and tell him that his order will be delivered late and will give him a time boundary. My text message to him will look like the following:

Hi Sir/Madam,

This is abc from xyz company. Your parcel was scheduled to deliver between 5 PM to 6 PM, but due to some uncertain situation, there is a short delay in the delivery. Your parcel is hoped to deliver within the next one hour.

Your patience will be highly appreciated, and apologies for the delay.

Best Regards.

A sample of the text message sent to apologize for the delay would look like this:

This is ABC from XYZ company. Your parcel was scheduled to deliver between 5 PM to 6 PM, but due to some unforeseen delays, we would deliver within the next hour.

Your patience will be highly appreciated, and apologies for the delay.

What is an Apology?

This is a statement that shows that a person is sorry for the action and would want to rectify the situation.

Hence, we can see that based on the hypothetical situation about sending a parcel and not delivering on time, an apology text needs to be sent and it is shown above.