Given that the yield to maturity of a bond falls from 6% to 5%. We have to find the percentage change in the price of the bond. How the percentage change in bond price and yield are related?
The percentage change in bond price is inversely proportional to the change in yield to maturity. i.e. the price of the bond moves in the opposite direction to its yield. This means that when yield decreases, bond prices will increase and vice versa. So, to calculate the percentage change in bond price we can use the following formula
Percentage change in bond price = - modified duration × Δy / (1 + y)where,
Δy = change in yield to maturity
y = initial yield to maturity And the modified duration is the measure of the sensitivity of bond prices to changes in yield. It can be defined as the weighted average of the time to receipt of cashflows of the bond. How to calculate modified duration? The modified duration can be calculated using the following formula:
modified duration = ∑ (t × cft) / (1 + y)
where, t = time to receipt of cash flow
cft = cash flow at time
ty = yield to maturity For the given problem, we don't have the cash flows of the bond. Therefore, we cannot find the modified duration. However, we can find the percentage change in the bond price if we have the modified duration of the bond.
Percentage change in bond price = - modified duration × Δy / (1 + y)Here,
Δy = (5% - 6%)
= -1%y
= 6% The modified duration is a measure of the sensitivity of bond prices to changes in yield. It can be defined as the weighted average of the time to receipt of cashflows of the bond. Since the cash flows of the bond are not given, we cannot calculate the modified duration. Therefore, we assume that the bond has a modified duration of 8.5 years (approximate modified duration of 10-year treasury bond).
Percentage change in bond price = - modified duration × Δy / (1 + y)
=- 8.5 × (-1) / (1 + 6%)
= 0.128 or 12.8% Therefore, the percentage change in the price of the bond is 12.8% if its yield to maturity falls from 6% to 5%.Hence, the answer is, "The percentage change in the price of the bond is 12.8%."
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At July 1, 2022, Landis Company sold the Ritter bonds for $3,090,000 immediate after receiving the interest payment. Assuming Landis Company has a portfolio of Available-for-Sale Debt Securities, what should Landis Company report as a gain(loss) on the bonds?
Answer:
76900
Explanation:
Fair Value of Ritter=3,180,000
Landis Purchased= 3,000,000
Rate = 8%
Time = 5 yrs
Bond sold = 3124,740
Rate = 7%
3,180,000- (3124,740 – 10,620 – 10, 980) =76900
On November 1, 2022, a company using accrual accounting, pays $900,000 for a television advertising campaign Commercials will run evenly over six months beginning on November 1, 2022. How much Advertising Expense will be reported on an income statement prepared for the year ended December 31, 2023? A. $900,000 B. $600,000 C. $450,000 D. $300,000
Answer:
B) 600,000
Explanation:
Under the accrual method of accounting, expenses are recognized in the period in which they are incurred, regardless of when the payment is made. In this case, the company paid $900,000 for a television advertising campaign on November 1, 2022, but the commercials will run evenly over six months starting from that date.
Since the advertising campaign runs for six months, and the payment was made on November 1, 2022, the company will incur advertising expenses for two months in 2022 (November and December) and for four months in 2023 (January, February, March, and April). The amount of advertising expense recognized in 2022 and 2023 will be proportional to the length of the advertising campaign in each year.
To calculate the advertising expense that should be reported on the income statement for the year ended December 31, 2023, we can use the following calculation:
Total advertising expense = (Total cost of advertising campaign / Number of months in campaign) x Number of months in 2023
Total cost of advertising campaign = $900,000
Number of months in campaign = 6
Number of months in 2023 = 12
Therefore, the advertising expense that should be reported on the income statement for the year ended December 31, 2023, is:
(900,000 / 6) x 4 = $600,000
Therefore, the correct answer is B) $600,000.
Jame pent $(2y2 6). He bought notebook that each cot $(y2 − 1). The expreion to find the number of notebook Jame bought i. If y = 3, Jame bought
notebook
James bought $(2y² + 6). If y = 3, this amount is 18. He bought notebooks that each cost $(y² - 1). If y = 3, each notebook cost 8. The expression to find the number of notebooks James bought is 18 / 8 = 2.25.
Since James can only buy whole notebooks, he bought 2 notebooks. Therefore, if y = 3, James bought 2 notebooks.
To find the number of notebooks James bought in general, we can use the expression
18 / (y² - 1).
This expression will give us the number of notebooks James bought, depending on the value of y.
For example, if y = 2, the expression would be
18 / (2² - 1)
=6
Which equals 6. This expression can be used to find the number of notebooks James bought for any given value of y.
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The contract interest rate for bonds ___________.a)Â must equal the effective interest rateb)Â will fluctuate over the life of the bondc)Â has no relation to the cash flow associated with a particular bondd)Â is greater than the effective interest rate when bonds are issued at a premiue)Â none of these
The correct answer is (b).
When bonds are issued at a premium under a contract, the interest rate must be higher than the effective rate of interest. The bond specifically refers to the interest rate.
Hence, it is a correct option.
The written document that can be used to create an agreement between two or more parties is referred to as a contract. It is regarded as legal proof of a certain transaction. Only if a contract complies with all laws and regulations can it be considered lawful.
Reasons for wrong options include:
Option (a): The effective rate of interest and the interest rate on bonds are not equal. The future interest payments are discounted.
Option (c): Because it involves financing, it has a connection to cash flows, but the interest rate must be higher than the effective rate of interest.
Option (d): Bonds interest rates won't change over their lifespan.
Option (e): Only one of the choices is accurate. As a result, it is the wrong option.
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A muitinational company operating in some countries wnere bribery and kickback payments are an entrenched local custom and are not considered unethical is well-advised to
A multinational company operating in countries where bribery and kickback payments are an entrenched local custom and not considered unethical is in a precarious position. While it may be tempting to participate in these practices to maintain business relationships, it is important to consider the long-term consequences.
Engaging in bribery and kickbacks can damage a company's reputation and lead to legal and financial repercussions. In addition, it can create an uneven playing field for competitors who refuse to participate in these practices.
Instead, companies should prioritize establishing ethical standards and codes of conduct for their operations in these countries. This can include implementing anti-corruption policies, conducting due diligence on business partners, and providing ethics training to employees.
Ultimately, it is possible for companies to succeed in these challenging environments without resorting to unethical practices. By operating with integrity and transparency, they can build trust with local stakeholders and establish a sustainable business model for the future.
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Use this formula to help solve the problem.
• gross income = total of all incomes added together
Given the following information, what does the gross income for the month equal?
Cash = $700, Checks = $200, Credit Card Charges = $400
a. $700
b. $1100
c. $1300
d. $400
Answer:
C.$1300.................:)
Answer:
1,300
Explanation:
just added the numbers
Select the correct answer.
Which equation is the correct fundamental accounting equation?
OA owner's equity = liabilities -assets
OB.
assets liabilities - owner's equity
=
OC. assets = liabilities + owner's equity
O D.
assets + liabilities = owner's equity
Answer:
Assets=liabilities+owner's equity
Who has a tw octane on rocket leage?
Answer:
I do :)
Have a great day!
Answer:
me
Explanation:
Bandura's research suggests that parents who wish to have children who aim for high goals shouldA) model high standards for behavior.B) punish low performance.C) tell their children about the difficulties of the real world.D) be nurturant.
Bandura's research suggests that parents who wish to have children who aim for high goals should model high standards for behavior. The correct answer is A)
Bandura's research suggests that parents who wish to have children who aim for high goals should model high standards for behavior. Children learn through observation and modeling, and they are more likely to adopt behaviors that they see modeled by their parents.
Therefore, parents who model high standards for behavior are more likely to have children who adopt similar standards and aim for high goals. In contrast, punishing low performance may create fear of failure and discourage children from taking risks and setting high goals.
Similarly, telling children about the difficulties of the real world may create a sense of hopelessness and discourage them from setting high goals. Nurturant parenting is important for a child's emotional well-being but may not directly impact their goal-setting behavior.
Therefore, modeling high standards for behavior is the most effective way for parents to encourage their children to aim for high goals, which is option A).
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Whoever answers first gets 50 points
Answer:
i like ya cut g
Explanation:
In what circumstance would a property insurance claim be rejected?
A lease agreement contains a clause that gives the tenant the right to purchase the property at a specified price. This type of agreement is called a
Answer: Finance Lease
Explanation:
There are two main types of leases which are operating leases and finance leases. Operating leases work much like an asset being rented so no ownership is passed from the person leasing to the leasee.
When it comes to finance leases however, the person leasing treats the asset as if it is their own. They record depreciation and list it as an asset in their balance sheets. At the end of the lease term, the leasee then has the option to purchase the asset.
an account planner is planning their company's online advertising budget on a monthly basis. they choose ads performance planner for help accomplishing this task. which two advantages does performance planner offer? (choose two.)
The correct response is d. Leverage of machine learning for forecasting.
In essence, forecasting enables a corporation to examine past trends along with their present position and predict a future. In order to predict sales, budgets, and other things, you can use business forecasting tools. You can define and achieve goals by having a clear view of the potential of your company using data and industry trends. In marketing and sales, strategic forecasting is the process of predicting future demand and sales growth using benchmarks, historical data, and other information and considerations. Click Forecast Sheet in the Forecast group, which is located on the Data tab. Choose a line chart or a column chart from the Create Forecast Worksheet box to show the forecast visually. Select a conclusion by clicking Create after selecting a date in the Forecast End box.
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What is the best way to define a civic issue?
A civic issues is one that rotates around local area concerns or potentially citizenship incorporation/rejection. A civic issue might include government, yet there's no need to focus on government except for about a local area's collaboration with government.
As I utilize the term, civics or civic issues is more about friendly human associations than civil help. Community residents commonly act whether they are in the city, in the forest, in space, or any place.
Individuals are the most mindful species and have created language by which to further develop associations for common, exhaustive wellbeing and security constantly. Occupants decide to either take part in community improvement or in plummet. There will continuously be a requirement for common and criminal regulation.
The urban resident considers, teams up, and interfaces with make individual joy with metro trustworthiness. In city respectability, the singular guides improvement of value under legal equity, a receptive flawlessness of composed policing. Any kind of future's family will set the norms.
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What does the business cycle shown on this graph suggest about the condition of the economy at point A?
A. the economy is getting worse and will continue to climb in for another quarter
B. the economy has struggled for some time but is preparing to recover
C. the economy has been well for a while and is at its highest point of the cycle
D. The economy is in a period of growth that will continue for some time
Answer:
C the Ecenomy has been well for while and is
at its highest piont of the cycle
Explanation:
hope it helps
Answer:
The economy is in a period of growth that will continue for some time
Explanation:
1-A sunk cost is defined as the most valuable alternative that is given up if a particular investment is undertaken.
Group starts True or False
2- Depreciation (CCA) tax shield is defined as the tax saving that results from the CCA deduction, calculated as depreciation multiplied by the corporate tax rate.
Group starts True or False
3- In Canada, depreciation for tax purposes is called ___________.
Multiple Choice
Depreciation for tax purposes.
Modified accelerated cost recovery.
Capital cost allowance.
Decelerated appreciation.
Accelerated depreciation.
4- Opportunity cost is defined as a cost that has already been incurred and cannot be removed and therefore should not be considered in an investment decision.
Group starts True or False
1- False. A sunk cost is not defined as the most valuable alternative that is given up if a particular investment is undertaken.
2- True. The Depreciation (CCA) tax shield is indeed defined as the tax saving resulting from the CCA deduction, calculated as depreciation multiplied by the corporate tax rate.
3- Capital cost allowance. In Canada, depreciation for tax purposes is referred to as capital cost allowance.
4- False. Opportunity cost is not a cost that has already been incurred and cannot be removed. It refers to the value of the next best alternative that is forgone when making a decision.
1- A sunk cost is a cost that has already been incurred and cannot be recovered. It is independent of future decisions and should not be considered in investment decisions.
2- The Depreciation (CCA) tax shield refers to the tax benefit received due to the deduction of depreciation expenses. It is calculated by multiplying the depreciation amount by the corporate tax rate.
3- In Canada, the term used for depreciation for tax purposes is "Capital Cost Allowance" (CCA). It represents the deduction allowed for the wear and tear, obsolescence, or depreciation of capital assets.
4- Opportunity cost refers to the value of the next best alternative that is forgone when choosing one option over another. It is a crucial factor in decision-making and should be considered when evaluating the potential benefits and drawbacks of different choices.
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Identify and define the business problem (GYM) to be solved in
an organization.
The business problem to be solved in a gym organization is member retention. This refers to the challenge of maintaining a high percentage of members who continue to use and pay for gym services over an extended period. Member retention is crucial for the long-term success and profitability of a gym as it directly impacts revenue, customer satisfaction, and overall business sustainability.
When members fail to renew their memberships or cease using the gym, it can lead to a decline in revenue and create the need for continuous efforts to attract new members to compensate for the loss. Therefore, finding effective strategies to improve member retention is a significant business problem for gyms to address.
The underlying causes of member retention issues can vary, including factors such as competition from other gyms, lack of engagement, limited variety of services, inadequate customer support, inconvenient operating hours, or insufficient results from fitness programs. It requires a comprehensive understanding of member needs and preferences, as well as the identification and implementation of appropriate solutions to increase member satisfaction and loyalty.
Solving the member retention problem involves developing strategies to enhance the overall gym experience, improve member engagement, deliver personalized services, provide effective support, offer appealing and diverse fitness programs, and establish long-lasting relationships with members. By addressing these factors, a gym organization can increase member retention rates, foster member loyalty, and maintain a sustainable and profitable business.
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Select the correct location on the image.
Which box on a W-4 notes an employee's filling status?
Box number 3 on a W-4 notes an employee's filling status?
What is a W-4?
An IRS form known as a W-4, also known as a "Employee's Withholding Certificate," instructs employers how much tax should be deducted from each employee's paycheck. Employers utilize the W-4 to calculate some payroll taxes and remit the taxes on behalf of employees to the IRS and the state (if applicable).
If your employer already has a copy of your W-4 form on file, you do not need to fill one out again. Additionally, you are not required to complete a new W-4 annually. But you'll probably need to complete a new W-4 if you start a new employment or wish to change the withholdings at your current position. In either case, it's a good justification for reviewing your withholdings.
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What does it mean to “authenticate” your payment? How do these payment systems authenticate?
Answer:
Payment authentication is the process of confirming a customer's identity through at least one of the following authentication factors: knowledge, inherence, ownership, and user location. Knowledge is the most common category used for transaction authentication.
What kind of psychologist would someone who is dealing with the loss of a loved one most likely visit?
Answer:
Counseling psychologist
Explanation:
I just took the test! Good luck :)
Assume the following information appears in the standard cost card for a company that makes only one product: During the most recent period, the following additional information was avallable: + 20,000 pounds of material was purchased at a cost of $10.50 perpound - All of the material that was purchased was used to produce 3.900 units. - 8.000 direct iabor-hours were recorded at a total cost of \$132,000. - The actual variable overhead cost incurred during the period was $25,000. Assuming the company uses direct labor-hours to compute its predetermined overhead rate, what is the variable overhead efficiency variance? Multiple Choice $900F $900U $925U 5925F
Assuming the company uses direct labor hours to compute its predetermined overhead rate, the variable overhead efficiency variance is $625 U,
The calculation for variable overhead efficiency variance is as follows;
Variable overhead efficiency variance = (Actual labor hours worked - Standard labor hours allowed) x Variable overhead rate per hour
Therefore, the calculation for the variable overhead efficiency variance is:
Variable overhead rate per hour = Actual variable overhead cost ÷ Actual labor hours worked
Variable overhead rate per hour = $25,000 ÷ 8,000 = $3.125
Variable overhead efficiency variance = (Actual labor hours worked - Standard labor hours allowed) x Variable overhead rate per hour
The Standard labor hours allowed = Standard variable overhead rate x Standard hours allowed
Standard labor hours allowed = 2 hours x 3,900 units = 7,800 hours
Variable overhead efficiency variance = (Actual labor hours worked - Standard labor hours allowed) x Variable overhead rate per hour
Variable overhead efficiency variance = (8,000 hours - 7,800 hours) x $3.125
Variable overhead efficiency variance = 200 hours x $3.125
Variable overhead efficiency variance = $625.
Therefore represents an unfavorable variance, which means that actual labor hours worked are more than the standard labor hours allowed. Hence, the correct answer is $625 U.
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At year-end (December 31), Chan Company estimates its bad debts as 1% of its annual credit sales of $487,500. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $580 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. Prepare Chan's journal entries for the transactions.
Chan Company calculates that as of year's end (December 31), its bad debts were 1% of its $487,500 in annual credit sales. Chan keeps track of its bad debt costs.
What is fiscal period?
Chan records the cost of bad loans for that estimation. Chan makes the decision to close P's $580 account on February 1st of that year. Let's first define what is meant by "bad debt." When a corporation goes to prepare at the end of the fiscal period, this happens occasionally. Chan reports the estimate as a bad debt expense. Chan determines that P. Park's $580 account is uncollectible on February 1 of the following year and writes it off as a bad debt. On June 5, Park pays the sum that had been written off unexpectedly. Create the transactions in Chan's journal entries.
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When 10,000 units are produced and the sales price is $60 per unit, what are the
variable costs if the contribution margin is $20?
a.
$200,000
O b.
$40,000
O C.
$250,000
O d.
$400,000
Answer:
units 10000
contribution per unit = $20
sales per unit(price)= $60
we know that, variable cost= sales - contribution
1 method--
variable cost= $60 - $20
= $40 per unit
variable cost = 10000 units *$ 40
= $400000
2nd way----
contribution = 10000 units * $20
= $200000
sales = 10000 units * $ 60
variable cost = $600000 - $200000
= $ 400000
What term is used for taking time to renew oneself physically, spiritually, mentally and socially?
Answers:
a. thinking win/win
b. empathic mirroring
c. sharpening the saw
d. synergizing
The term used for taking time to renew oneself physically, spiritually, mentally and socially is "sharpening the saw." (option c.)
This concept comes from Stephen Covey's book "The 7 Habits of Highly Effective People" and is the seventh habit. Covey emphasizes the importance of taking time for self-renewal to achieve a balanced and successful life. Sharpening the saw involves engaging in activities that enhance physical, spiritual, mental, and social well-being, such as exercise, meditation, learning, and spending time with loved ones.
By regularly engaging in these activities, individuals can improve their effectiveness and ability to achieve their goals.
Option c is answer.
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a 7-year annuity of fourteen $5,800 semiannual payments will begin 13 years from now, with the first payment coming 13.5 years from now. a. if the discount rate is 8 percent compounded monthly, what is the value of this annuity five years from now? (do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. if the discount rate is 8 percent compounded monthly, what is the value three years from now? (do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. if the discount rate is 8 percent compounded monthly, what is the current value of the annuity? (do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Five years from now, the annuity will be worth $45,841.90.
Describe an annuity.You may get a solid, secure income in retirement thanks to an annuity. With any or all of you pension savings, you may buy an income. It provides income either for a set period of years or for life. Your needs may be met via instant fixed, instant factor, defer fixed, or defer variable annuities.
How is an annuity calculated?These are long-term agreements with an insurance provider where you put money. You receive income in return for their investment in the form of payments through b.1 or, for an extra fee, a guaranteed lifelong income benefit.
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How do insurance companys make money?
According to the "Negotiating Family Relationships" website you visited, if you and your siblings receive your allowance according to the amount of chores completed, your family is practicing the ___________ Model of Human relationships a. Equality Matching b. Authority Ranking c. Market Pricing d. Communal Sharing Please select the best answer from the choices provided A B C D.
The type of human relationship which a family practises if it gives allowances based on the amount of chores completed is known as:
C. Market pricingWhat is Market Pricing?This refers to the type of strategy which is based off on the valuation which is given based on the competitive strategy and the value of the product is evaluated in relation to others.
With this in mind, we can see that based on the given description of the family and the allowances received which is based on the amount of chores completed, this is known as market pricing model of human relationships.
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Purchasing & Inventory Control Math Quiz
QUESTION 1 of 10: You begin the week with 30 units of orange juice. You purchase 50 units. Your ending inventory for the week is 30 units.
How many units did you sell?
0000
a) 5
b) 15
c) 49
d) 50
Towards the end, 50 units had been sold.(option d)
How would you define inventory?The items and supplies that a company keeps on hand with the intention of reselling, producing, or using them are referred to as inventory or stock. The main focus of inventory management is determining the location and shape of stocked commodities. All the goods, merchandise, and supplies that a company keeps on hand in anticipation of selling them for a profit are referred to as inventory. Example: Only the paper will be regarded as inventory if a paper vendor utilizes a vehicle to distribute newspapers to clients. The car will be considered an asset.
Inventory sold = 30 + 50 - 30 = 50.
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Ethel and jack each separately apply for and receive a loan worth $7,725 apiece. ethel has a relatively average credit rating, so her loan has an apr of 9.14%, compounded monthly. jack’s credit rating is excellent, so his loan has an apr of 6.88%, compounded monthly. if they both pay off their respective loans by making six years of identical monthly payments, how much more will ethel pay than jack? (round all dollar values to the nearest cent.) a. $1,047.51 b. $1,681.17 c. $687.48 d. $613.44
if they both pay off their respective loans by making six years of identical monthly payments, $613.44 more will ethel pay than jack.
A credit score is a numerical expression based totally on a stage evaluation of a person's credit files, to represent the creditworthiness of a man or woman. A credit score score is primarily based on a credit score document, statistics typically sourced from credit score bureaus.
lenders, inclusive of banks and credit score card businesses, use credit score ratings to assess the capability chance posed through lending money to consumers and to mitigate losses because of bad debt. creditors use credit score rankings to determine who qualifies for a mortgage, at what interest price, and what credit score limits. creditors also use credit score scores to decide which customers are likely to bring inside the maximum sales.
credit scoring is not confined to banks. different businesses, together with mobile telephone organizations, insurance corporations, landlords, and government departments appoint identical techniques. virtual finance groups such as online creditors additionally use alternative information assets to calculate the creditworthiness of borrowers.
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Please help I'm about to fail my class and i will be grounded for life, 100 pts for it! its financial literacy
Part One–Research
Imagine you bought 100 shares of stock three years ago and are selling it today. Select a company and research its stock prices. You can start with websites like Nasdaq and Fidelity. Determine the stock's price three years ago, or the purchase price, and its price today, or the selling price.
Part Two–Determine the Real Return
Calculate the real return of your stock investment using the following information:
Purchase price of 100 shares of stock
Selling price of 100 shares of stock
10% tax rate
3% inflation rate
2% administrative fee on the selling price of the stock
Part Three–Evaluate
Analyze your research and calculations, and answer the following questions:
What company did you select to buy stock in? Why did you select the company?
Consider the real return of the stock investment. Do you consider it a wise investment? Why or why not?
1. I imagine buying 100 shares of Amazon.com Inc. on January 3, 2020, when the stock price was $93.75, investing $9,375.
Today, October 31, 2022, the stock price of Amazon.com Inc. is $102.44.
2. The real return on my investment in Amazon.com Inc was a net loss of 7.12% or $667.60.
3. The company I selected to buy its stock three years ago was Amazon.com Inc.
4. I decided on Amazon.com Inc., hoping to earn spectacular returns since it is a multinational technology company.
5. When I consider the actual return on the stock investment in Amazon.com Inc., I think it was an unwise investment.
6. The investment returned a negative real value because I realized less than I initially invested; I actually lost about $667.60 overall.
What is the stock investment?Stock investment is the purchase of shares for an ownership interest in a publicly-listed company.
The investor makes the investment with the hope that the investee will grow and perform well over some period, enabling the investor to earn some real returns (in the form of dividends and capital appreciation).
Purchase of 100 shares Jan. 3, 2020 = $9,375 (100 x $93.75)
Sales of 100 shares Oct. 31, 2022 = $10,244 (100 x $102.44)
Tax (10%) = $1,024.40 ($10,244 x 10%)
Inflation (3%) = $307.32 ($10,244 x 3%)
Administration fee on sales (2%) = $204.88 ($10,244 x 2%)
Real Returns in dollars = $8,707.40 ($10,244 - $1,024.40 - $307.32 - $204.88)
Loss on returns = $667.60 ($8,707.40 - $9,375)
Loss percentage = 7.12% ($667.60/$9,375 x 100)
Unfortunately, Amazon.com Inc. did not pay any dividends during the period of my investment, and I really lost funds to taxes, inflation, and administration fees when I sold it.
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