Questions
Consider the following information on the stock market. Company Shares Outstanding Price, beginning of year Price,...

Consider the following information on the stock market.

Company

Shares Outstanding

Price, beginning

of year

Price, end

of year

A

200

$58

$94

B

500

$20

$25

C

1000

$70

$6

  1. Compute a price-weighted stock price index for the beginning of the year and the end of the year. What is the percentage change?
  2. Compute a value-weighted stock price index for the beginning of the year and the end of the year. What is the percentage change?

In: Finance

Consider the following information on the stock market. Company Shares Outstanding Price, beginning of year Price,...

Consider the following information on the stock market.

Company

Shares Outstanding

Price, beginning

of year

Price, end

of year

A

200

$58

$94

B

500

$20

$25

C

1000

$70

$6

  1. Compute a price-weighted stock price index for the beginning of the year and the end of the year. What is the percentage change?

  1. Compute a value-weighted stock price index for the beginning of the year and the end of the year. What is the percentage change?

In: Finance

Calculate the net present value at year 0 for the following cash flows and interest rates...

Calculate the net present value at year 0 for the following cash flows and interest rates compounded semi-annually (rounded $ to two places after the decimal). The year 0 cash flow is $373, the year 1 cash flow is $200, and the year 2 cash flow is $-147. The interest rate for the first period (year 0 to 1) is 3% and the interest rate for the second period (year 1 to 2) is 4.5%.

In: Finance

The returns for AhhChocolate.com over the last 5 years are given below. Assuming no dividends were...

The returns for AhhChocolate.com over the last 5 years are given below. Assuming no dividends were paid, what is the 5-year “average” Holding Period (Geometric) Return for AhhChocolate? Year 1 return = 5.3% Year 2 return = - 4.6% Year 3 return = - 3.2% Year 4 return = 1.2% Year 5 return = 3.5%

A) 0.368%

B) 3.550%

C) 8.400%

D) 2.200%

E) 0.440%

In: Finance

On January 1 of the current year, Jimmy's Sandwich Company reported stockholders’ equity totaling $125,000. During...

On January 1 of the current year, Jimmy's Sandwich Company reported stockholders’ equity totaling $125,000. During the current year, total revenues were $100,000 while total expenses were $89,500. Also, during the current year paid $24,000 in cash dividends. No other changes in equity occurred during the year. If, on December 31 of the current year, total assets are $200,000, the change in total stockholders’ equity during the year was:

In: Accounting

the BDC partnership has 3 partners with the following partnership interest percentages and tax-year ends: B...

the BDC partnership has 3 partners with the following partnership interest percentages and tax-year ends: B has a 35 percent ownership and a dec. 31 year end; D owns 45 percent and has a June 30 year end, and C owns 35 percent and has a Oct. 30 year end. What method must be used to determine the partnership year end and which year end is required?

In: Accounting

Growth and development: In 2017, Ethiopia had a per capita income of $1,600, about $4 per...

Growth and development: In 2017, Ethiopia had a per capita income of $1,600, about $4 per day. Compute per capita income in Ethiopia for the year 2050 assuming average annual growth is

  1. 1% per year.
  2. 2% per year.
  3. 4% per year.
  4. 6% per year. (
  5. For comparison, per capita income in Mexico in the year 2017 was nearly $17,000, about 30 percent of the U.S. level.)

In: Economics

Suppose that annual income from a rental property is expected to start at $1330 per year...

Suppose that annual income from a rental property is expected to start at $1330 per year and decrease at a uniform amount of $70 each year after the first year for the 16 year expected life of the property. The investment cost is $6900 and i is %10 per year. What is the present equivalent of the rental income? Assume that the investment occurs at time zero (now) and that the annual income is first received at the end of first year

In: Finance

"A new delivery truck is available for $200,000. O&M costs are $21,000 each year for the...

"A new delivery truck is available for $200,000. O&M costs are $21,000 each year for the first five years, $33,600 in year six, $52,100 in year seven, and $81,300 in year eight. Salvage values are estimated to be $150,000 after one year and will decrease at the rate of 17% per year thereafter. At a MARR of 17%, determine the economic service life of the truck. Enter your answer as an integer from 1 to 8."

In: Accounting

Taxpayers subject to the passive loss limitation must file Form 8582-CR for what purpose? To determine...

Taxpayers subject to the passive loss limitation must file Form 8582-CR for what purpose? To determine the amount of passive activity credit (PAC) for the current year. To determine the amount of passive activity credit (PAC) for the current year, including any prior-year unallowed PAC they may claim in the current year. To correct the amount of passive loss claimed in a prior year. To correct the amount at risk determined in a prior year.

In: Accounting