Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Oct 06, 2024

Person A bought 2 shares of Company XYZ for $220 (each share price). If the current stock price is $200 and is 100% financed by

Person A bought 2 shares of Company XYZ for $220 (each share price). If the current stock price is $200 and is 100% financed by equity then compute the rate of return?

a 4.55%

b 10%

c -4.55%

d -10%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Developments In Entrepreneurial Finance And Technology

Authors: David B. Audretsch, Maksim Belitski, Nada Rejeb, Rosa Caiazza

1st Edition

1800884338,1800884346

More Books

Students also viewed these Finance questions

Question

★★★★★

A hiker determines the length of a lake by listening for the echo of her shout reflected by a cliff at the far end of the lake. She hears the echo 2.0s after shouting. Estimate the length of the lake.

Answered: 1 week ago

Question

★★★★★

The Regal Cycle Company manufactures three types of bicyclesa dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: Total Dirt Bikes Mountain Bikes...

Answered: 1 week ago

Question

★★★★★

outline the importance of the uncertainty-based route forward and comment on its relevance, depending on the organisations context;

Answered: 1 week ago

Question

★★★★★

Support-department cost allocations; single-department cost pools; direct step-down, and reciprocal methods. The Manes Company has two products. Product 1 is manufactured entirely in Department X....

Answered: 1 week ago

Question

★★★★★

You attempt to estimate the value of a property that has a net income (NOI) of $58000. You have collected the following data of four comparable considered (benchmark). 10p 1 2 3 4 Sales Price NOI...

Answered: 1 week ago

Question

★★★★★

At the time of his death in 2021, Donald owned a farm (a qualified, closely held business) with a most suitable use value of $6,950,000 and a current use value of $4,865,000. a. If the special-use...

Answered: 1 week ago

Question

★★★★★

You are considering getting a Little Nero Caesar Salad Franchise, because your boss (the owner of a Down Under Sandwich Shoppe) seems to be making it big.The Down Under Shoppe grosses an average of...

Answered: 1 week ago

Question

★★★★★

On December 31, 2020, Berclair Inc. had 320 million shares of common stock and 5 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2021, Berclair...

Answered: 1 week ago

Question

★★★★★

1. Q1 A furniture company uses sunmica tops for tables. It provides the following data: St. Quantity for sunmica per table4 sq. ft St. price per sq. ft of sunmicaAED 5 Actual prod. Of tables1000...

Answered: 1 week ago

Question

★★★★★

Problem 3 (10 points) Kathy, an accrual basis taxpayer, operates a gym. She sells memberships that entitle the member to use the facilities at any time. A one-year membership costs $300 ($300/12 =...

Answered: 1 week ago

Question

★★★★★

Question 2 7 A threat actor gains access to a system by compromising a user's account. The threat actor is then able to execute p with the permissions of the subject whose account was compromised....

Answered: 1 week ago

Previous Question Next Question