You put up $60 at the beginning of the year for an investment. The value of the investment grows TO $62.4 and you earn a dividend of $3.50. Your HPR was ____, capital gains yield was ____ and dividend yield was _____.
| A. | 5.83%, 4%, 1.83% | |
| B. | 11%, 5%, 6% | |
| C. | 4%, 3%, 1% | |
| D. | 9.83%, 4%, 5.83% | |
| E. | 1.83%, 1%, 0.83% |
In: Finance
The owner of a bicycle repair shop forecasts revenues of 216000 a year. Variables cost will be $64000 rental cost for the shop are 44,00 a year . Depreciation on the repair tools will be $24000.
A. Prepare an income statement for the shop base on the estimate. Tax rate is 20%
B. Calculate the operating cash flow for the repair shop using the three methods given below Dollars in minus dollars out Adjusted accounting profit Add back depreciation tax shield
In: Finance
A partnership began its first year of operations with the following capital balances:
Young, Capital: $143,000
Eaton, Capital: $104,000
Thurman, Capital: $143,000
The Articles of Partnership stipulated that profits and losses be assigned in the following manner:
Young was to be awarded an annual salary of $26,000 with $13,000 salary assigned to Thurman.
Each partner was to be attributed with interest equal to 10% of the capital balance as of the first day of the year
The remainder was to be assigned on a 5:2:3 basis to Young, Eaton, and Thurman, respectively.
Each partner withdrew $13,000 per year. Assume that the net loss for the first year of operations was $26,000 with net income of $52,000 in the second year.
What was Young's total share of net income for the second year?
Select one:
a. $17,160 income.
b. $4,160 income.
c. $19,760 income.
d. $17,290 income.
e. $28,080 income.
In: Accounting
At the end of the year, a company has a balance in Allowance for Uncollectible Accounts of $2,000 (credit) before any year-end adjustment. The balance of Accounts Receivable is $180,000. The company estimates that 5% of accounts receivable will not be collected over the next year.
Record the adjustment for uncollectible accounts. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
In: Accounting
The following expenses were incurred by a merchandising business during the year. In which expense section of the income statement should each be reported: (a) selling, (b) administrative, or (c) other?
Advertising expense
Depreciation expense on store equipment
Insurance expense on office equipment
Interest expense on notes payable
Rent expense on office building
Salaries of office personnel
Salary of sales manager
Sales supplies used
In: Accounting
In: Accounting
A company is obligated to pay its creditors $6,190 at the end of the year. If the value of the company's assets equals $5,926 at that time, what is the value of shareholders' equity?
Multiple Choice
−$264
$12,116
$0
−$132
$264
In: Finance
What is the future value at the end of year four of the following set of end-of-year cash flows? Assume an interest rate of 8 percent. Year Cash Flow 1 $1,000 2 -$1,000 3 $1,000 4 -$1,000
A) $0.00 B) $127.38 C) $173.31 D) $379.41 E) $3,312.13
The answer is B but I got E using the calculations below. How do you get $173.31?
PV= 1,000/(1+.08) + 1,000/(1+.08)^2 + 1,000/ /(1+.08)^3 + 1,000//(1+.08)^4 = 3312.127
In: Finance
The shares outstanding of RING Inc. are 321 million. At the end of the year, the company expects its earnings to be $641 million. The equity cost of capital of the company is 11%. The firm pays out 50% of its earnings in total: 20% used to repurchase shares and 30% paid out as dividends. If earnings are expected to grow at a constant rate of 7% per year, what is the share price of RING Inc?
Select one:
$12.48
$37.44
$49.92
$24.96
In: Finance
Shares in Rioja Enterprises were priced at $4.45 at the beginning of the year. At the end of the year the price had dropped to $4.30 and the company had paid a dividend of $0.26. What is the dividend yield?
A. 5.84%
B. -3.37%
C. 2.47%
D. -0.53%
In: Finance