Gabriel received $200 of income from an investment during the past year. This represents an income yield

Question:

Gabriel received $200 of income from an investment during the past year. This represents an income yield of 4%. If the capital gain yield for the year was 10%, what was the value of the investment (not including income) at the end of the year?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Business Mathematics In Canada

ISBN: 978-0070009899

7th edition

Authors: Ernest Jerome

Question Posted: Jan 20, 2016 07:36 AM

See More Questions

Igor worked the entire year at Dauz Inc, a Canadian controlled private corporation based in St John's. Igor received $180,000 of salary in 2016. He was also awarded a bonus in December 2015 in the...
Explain why you must earn 10% on all income received from an investment during its holding period in order for its yield actually to equal the 10% value youve calculated.
On November 15, Alex and Deanna Kent come to you for tax advice. The Kents, a married couple that files a joint tax return, own a rental home in Southern California. From January to November 1 of the...
Dalmo Bhd is an investment holding company and currently it has 3 subsidiaries as stated below. Dalmo Bhd group of companies financial year end is 31st March. The shareholding structure of Dalmo...
What assumptions must be made about the realization of undistributed subsidiary income when the affiliates file separate income tax returns? Why?
Suppose that a business available for purchase has shown an average net profit of $40,000 for the past five years. During these years, the amount of profit fluctuated between $20,000 and $60,000. The...
The PFD in Figure 11.58 shows a process for the manufacture of $\mathrm{X}$ and $\mathrm{Y}$. The process feed is heated in furnace $\mathrm{F}-100$ to $800^{\circ} \mathrm{C}$ and is then...
Noe Drilling Inc. is considering projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. The CEO believes the IRR is the best...
A spherical shaped building is 112 meters in height and 157 m in diameter in outer dimensions. The thickness of the reinforced concrete shell of the sphere is 25 cm and the effective thermal...
Various doses of a poisonous substance were given to groups of 25 mice and the following results were observed: (a) Find the equation of the least squares line fit to these data. (b) Estimate the...
An investors portfolio increased in value from $35,645 to $54,230 over a six-year period. At the same time, the Consumer Price Index rose by 26.5%. What was the portfolios annually com- pounded real...
An $8600 investment was worth only $7900 one year later. If the rate of total return for the year was -5%, how much income was received from the investment during the year?
Choose three or four other students and make up a team. Create a marketing plan to increase enrollment in your school. Describe the four marketing mix elements that make up the plan.
What is ITIL and how can it help improve the practice of integrated auditing?
True or False. If spending exceeds output, real GDP will decline as firms cut back on production.
Explain how ISO 31000Risk Management and related standards can help internal auditors improve business practices and better identify and assess organizational risks.
List five ISO standards and explain their relevance to internal auditors.
If inventories unexpectedly rise, then production _________ sales and firms will respond by ________ output. a. trails; expanding b. trails; reducing c. exceeds; expanding d. exceeds; reducing
Let g(x) = x for x 0. a. Find the average rate of change of g(x) with respect to x over the intervals [1, 2], [1, 1.5] and [1, 1 + h]. b. Make a table of values of the average rate of change of g...
In Exercises 15 through 30, find the derivative dy/dx. In some of these problems, you may need to use implicit differentiation or logarithmic differentiation. y ex + et -2x 1 + e
Reynolds Construction needs a piece of equipment that costs $200. Reynolds either can lease the equipment or borrow $200 from a local bank and buy the equipment. If the equipment is leased, the lease...
Assume that Reynolds tax rate is 40 percent and the equipments depreciation would be $100 per year. If the company leased the asset on a 2-year lease, the payment would be $110 at the beginning of...
Big Sky Mining Company must install $1.5 million of new machinery in its Nevada mine. It can obtain a bank loan for 100 percent of the purchase price, or it can lease the machinery. Assume that the...
BRAND SELF COLLATERAL What is your brand name? What is your logo (YOU MUST DESIGN IT What is your brand slogan (the phrase that defines your brand and yourself) What are celebrity spokesperson is...
Amidst the burgeoning complexity of contemporary business landscapes, how do advanced organizations employ sophisticated design principles and ergonomic considerations to optimize physical workspaces...
JavaScript Assignment 1: Personal Web site This assignment is linked to your final project. Thus far, you have completed a total of 4 sections as part of the Final Project. You have created a basic...

Gabriel received $200 of income from an investment during the past year. This represents an income yield

Question:

Step by Step Answer:

Given Income 200 Income yield 4 Therefor...View the full answer

Business Mathematics In Canada

Students also viewed these Accounting questions