The reinvestment of capital gains and dividends can make a significant difference in your total return. Consider the following situation to determine the difference reinvestment can make over a five-year period. Initial purchase amount $13 comma 000 Initial purchase date January 1 Initial purchase price $24.84 per share Annual capital gains distribution rate 1.83% Annual dividend distribution rate 0.57% Annual price appreciation rate 7.22% (before distribution) Assume all distributions are made on the last day of the year at the closing net asset value (NAV). Ignore tax consequences for the scenarios in a and b, below. a. Calculate the ending investment value plus the total of distributions received assuming no reinvestment. b. Calculate the ending investment value assuming all distributions are reinvested. c. Calculate and explain the difference.

Saeed needs money to purchase tools, basic office supplies, parts to refurbish equipment, accounting software, and legal fees. believing saeed's business will be a success, an investor invests $5,000 to saeed open his business. in return, saeed agrees to repay the investor the $5,000 plus 17 percent of the profits of the business. calculate the return on investment for the investor if saeed's business makes $7,000 in profit as a total return of the business in its first year.

Which of the following statements is correct? a. two firms with identical sales and operating costs but with different amounts of debt and tax rates will have different operating incomes by definition. b. free cash flow (fcf) is, essentially, the cash flow that is available for interest and dividends after the company has made the investments in current and fixed assets that are necessary to sustain ongoing operations. c. retained earnings as reported on the balance sheet represent cash and, therefore, are available to distribute to stockholders as dividends or any other required cash payments to creditors and suppliers. d. if a firm is reporting its income in accordance with generally accepted accounting principles, then its net income as reported on the income statement should be equal to its free cash flow. e. after-tax operating income is calculated as ebit(1 - t) + depreciation.

Connors academy reported inventory in the 2017 year-end balance sheet, using the fifo method, as $154,000. in 2018, the company decided to change its inventory method to lifo. if the company had used the lifo method in 2017, the company estimates that ending inventory would have been in the range $130,000-$135,000. what adjustment would connors make for this change in inventory method?