What's a per share dividend?
Question:
Let's say I purely purchased 500 shares at $10 ($5000 total) with a dividend of $0.25, and I vend it in a year at $20 ($10000 total), how much would I enjoy made?
And how is this translated into P/E and "yield"?
Thanks.
Answers:
In cap gain, you've made $5K. Add to that your dividends of $125 (500 shares x $0.25), and you've earned $5,125, or a 102.5% gain.
The initial surrender is 2.5% ($0.25/$10 per share). If the dividend does not change, the abandon goes down to 1.25% at the stop of the year ($0.25/$20 per share).
Not enough info for P/E, since the denominator is income. Once you have profits per share, just divide the share price by that to gain your P/E.
I hope that helps.
Something tell me that you KNOW the answer. So, why are you asking the question?
Where can I find $80,000.00-$500,000.00 close to a investor?
Question:
I'm tring to open a Itlain Wine shaft in the Denver nouns that will pull sale up to $120,000.00 a month, but my credit is low so where should I look for a loan and not a Angel site they want money to post anything
Answers:
7/25 Edit:
If You don't know how to start a business, write a business plan, or find financing for your business...
Mabey You should check out a local Business School or Red Rocks Community College for business classes back diving headfirst into owning your own business.
If You can't afford one of those, remember that The SBA is a govt agency, so they respond slowly. My sister used thier free classes when Her & Her hubby started thier flooring business. She have to dig around through thier website to find the schedule, locations, and sign-ups. The lectures and materials have be invaluable to her (mostly put together by retired businessmen & financial planners volunteering thier time).
--------Original Answer-------
Try the SBA yet?
Small Business Adminstration usually have listings of creditors/investors willing to work next to small businesses & startups. They also offer free classes & guidance on running a business.
Yes the small business association is a good bet. But you have need of to have some money of your own to put within the business, otherwise you'll just be working for others. And you stipulation to build a solid business plan before you step looking for loans or investors.
You'll have to show open market research and comparitive studies that justify your income estimate. You'll involve to draw up an example balance sheet, showing the running costs, not newly the income. And you'll have to explain how you plan to maintain the bar popular and retain that rank of income.
Most bars and restaurants come to nothing in the first year - be prepared to explain why you and your plan are so special that you won't go wrong.
You'll need to show a appropriate track record contained by working in this sector, and of running your own businesses related to this type of enterprise. Your resume requirements to be as impressive as your business plan.
I'm afraid here is no-one willing to invest that much money surrounded by a business without abundantly of proof that you will be able to return a profit.
Are at hand any financial planner's out within who hold clients but are not currently certified?
Question:
For those of you who are actively managing other people's assets for a fee but currently don't hold any special credentials, how do you do it? How do you prove to people that you're clued-up about financial instruments, estate planning, etc.?
Answers:
you get to have some credible evidence you know or terrifically powerful contacts. Evidence can be a Ph.D in Finance. Otherwise you will enjoy a tough time finding people.
How do I transport existing stocks that I own and turn them adjectives into an IRA?
Question:
Answers:
You don't really turn stocks into an IRA. First, you open an Individual Retirement Account. You can do this at a sandbank, a stock brokerage house or even Ameritrade or some discount stock company. Then, you can transfer your stock into the article. You can't just verbs as much as you want though. There is a limit to how much you can put within each year. Also, you have to have earn as much money during the year as you are putting in. So, if you want to put $4,000 worth of stock surrounded by your IRA, you had to hold earned $4,000 this year. You don't own to have bought the stock this year or anything. But the merit of the stock when you put it in the article cannot be more that the IRS limit or the amount you earn this year (which ever is less).
You can't, unless it's already qualified money. You can, however, turn a portion of your stock investments into a qualified IRA, up to the contain for 2007($5000) depending upon your age. If you have the stock, the redemption information is chock-a-block out on the back and your signature will requirement a signature medallion guarantee, not notarized. But if you purchased through a broker and the stock is held in a trust, contact the broker to trade and convert to an IRA.
Take a look at this article on "self directed IRA" s and see if it applies
http://www.businessweek.com/magazine/con...
You need to receive a better handle on what an IRA is. Try to read up on it on the internet. My kindness is that its a retirement tool that defers taxes until after retirement, when your levy rate will be lower. You can put a limited amount of money contained by every year, you can reduce your taxable income by the contribution, and the money grows interest free.
I'm not sure if you can newly roll stocks into an IRA. You'd probably have to foot any capital gain taxes on the gains already realize before they progress into the IRA. Would be tricky. You need support from an attorney or accountant or a mutual fund company.
An existing stock portfolio and an IRA meet different wishes and are treated differently by the taxes.
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CFP's: Is the AAMS credentials tryout complicated to go past?
Question:
The AAMS (Accredited Asset Management Specialist) certification is offered by the College for Financial Planning. Most culture take the CFP exam, but I be wondering if anyone's tried to go for the AAMS which they also contribute. Is it any easier? How long is the test?
Answers:
CFP's experiment is incredibly hard, I not quite passed.
Multiple..CHOICE!!?
Question:
Compared with the expenditure approach to calculating GDP, the income approach is:
a - more accurate.
b - more practical.
c - preferred by the average consumer.
d - connected more strongly to stock marketplace performance.
Thank you!
Answers:
This may comfort
The income approach to measuring GDP is to attach up all the income earn by households and firms in a single year. The rationale trailing the income approach is that total expenditures on final goods and services are eventually received by households and firms surrounded by the form of wage, profit, rent, and interest income. Therefore, by adding together wage, profit, rent, and interest income, one should attain the same advantage of GDP as is obtained using the expenditure approach.
The expenditure approach is to tag on up the market attraction of all domestic expenditures made on final products and services in a single year. Final merchandise and services are goods and services that hold been purchased for final use or stuff and services that will not be resold or used in production in the year.
When a company requirements money from investors how are stock prices determined on IPO's determined? (READ DETAILS)
Question:
(AN EXAMPLE) say you hold a business like a grocery store and say aloud the property and such is worth 2 million. SAY the owner brings in contained by ACTUAL PROFIT NET PROFIT in his pocket 220 thousand a year; so it would clutch about 10 years to profit on buying the store as an investment. Anyway using this store as an example say-so the OWNER wanted money from investors so he or she be going to sell stock HOW WOULD THEY BE PRICED?
Answers:
Your example of one store near one profit stream wouldn't really make sense for an IPO, as it doesn't nouns like the owner is trying to expand. The grocery store owner would indubitably sell the story of how his store is better, or he can run stores better than others, and that he requests an infusion of capital to buy / build more stores.
What you are outlining sounds close to a perpetuity - a steady and constant stream of cash flows. The helpfulness of this company would be found by discounting the future brass flows. In this case the answer would be $220,000 / discount rate -- let's vote 5.5% = $440,000
As a more general answer though, IPOs are priced to efficacy a company assuming the capital will be used for growth and successful execution of its business plan. IPOs are also slightly discounted to entice institutional investors to pinch on the risk of a new offering - hence the 'pop' on the first light of day of trading (generally)
Without doing the math (and this sounds suspiciously like a homework question), it's (1) what the open market will bear, and (2) as a guideline, a price:profits ratio. Most stocks have a P:E ratio surrounded by a certain span (I think it's 13:15-ish).
So when setting a price, they want to set it kinda close. As a practice, however, savvier brokerage houses will set it a bit lower, pilfer a position, and pocket the difference. They certainly don't want to set it too lofty and lose investors, nor set it too low and give away the company, so it's surrounded by their best interest to try to target it pretty close. As a rule they do, while still trying to leave for a while room for themselves.
Discount rate query......?
Question:
Say for example, if your company has the following characteristics:
Book Value of Equity: 500M
Market Value of Equity (number of shares x current stock price): 5 Billion
Book Value of Debt: 1 Billion (market merit assumed the same)
Interest Rate on Debt: 12%
Tax Rate: 40%
Beta: 1.4
S&P RRR: 12%
10-year Treasury Bond 4%
Does anyone know what discount rate would you apply to your investment projects?
Answers:
I'm not exactly going to give the answer, it's too correct of a homework assignment.
You are looking for the "hurdle rate." Here is an explanation from Wikipedia:
In general, respectively project's value will be estimated using a discounted currency flow (DCF) valuation, and the opportunity with the superlative value, as measured by the resultant lattice present value (NPV) will be select (see Fisher separation theorem). This requires estimating the size and timing of all of the incremental currency flows resulting from the project. These future brass flows are then discounted to determine their present good point (see Time value of money). These present values are consequently summed, and this sum net of the initial investment outlay is the NPV.
The NPV is greatly influenced by the discount rate. Thus select the proper discount rate—the project "hurdle rate"—is critical to making the right decision. The hurdle rate is the minimum agreeable return on an investment—i.e. the project appropriate discount rate. The hurdle rate should reflect the riskiness of the investment, typically measured by volatility of lolly flows, and must take into rationalization the financing mix. Managers use models such as the CAPM or the APT to estimate a discount rate appropriate for a particular project, and use the weighted average cost of assets (WACC) to reflect the financing mix preferred. (A common error contained by choosing a discount rate for a project is to apply a WACC that applies to the entire firm. Such an approach may not be appropriate where the risk of a exceptional project differs markedly from that of the firm's existing portfolio of assets.)
In conjunction with NPV, within are several other measures used as (secondary) selection criteria contained by corporate finance. These are noticeable from the DCF and include payback, IRR, Modified IRR, equivalent annuity, capital use, and ROI.
Target rate of return? Then we can answer.
Suggest how to choose the most suitable mutual fund mission for investing.?
Question:
Answers:
A lot depends on what your personality is approaching. Some people want to put their money into a mutual fund and sit fund and hopefully get a 10% annual return. Others close to to play around a little and attempt to perchance get a 13% return or even more. They do not acquire too upset if the value of their investments happend to drop 20%. They amount that over the long term they will breed it up. Others actually trade mutual funds resembling stocks going from ones that are too cool to ones that are really hot currently.
Jeff J gave you a suitable suggestion, but there is a slight problem next to his suggestion for investors just starting out. That suggestion requires at least possible $15,000 to begin near. However, there are funds that emulate that approach that require much smaller amount initial investment. One suggestion is to consider a retirement target fund, even if you plan to cash out earlier retirement age. They are well diversified and sort of a one stop shopping experience. You can as a rule begin beside about a $2500 investment. Fidelity market these and T Rowe Price and Vanguard.
If however you are looking for greater potential returns then you will want to concentrate on a mutual fund that have a track record of generate such returns or maybe several. Of course a short time ago because they did so in yesteryear is no guarantee that they will do so in the adjectives. There are any number of internet base mutual fund sources available for you to comfort you with your inspection.
create a "lazy portfolio" check out http://www.marketwatch.com/news/story/qu...
A mutual fund is of late a legal structure for investing -- a commingled fund which by buying shares of the fund allows you to own a small share of profoundly of other securities, usually stocks or bonds.
Stock or equity funds invest in publicly traded companies. Generally speaking, contained by terms of risk to reward, these funds can be rank: (1) Emerging Markets (Foreign stocks); (2) Small company stocks (3) Mid-sized company stocks; (3) Large growth stocks; (4) Large value stocks. So the category that give you, theoretically, the most reward at a soaring level of risk is emerging souk stocks and the the category that gives you reward at, relatively speaking, the least possible amount of risk is large company, attraction stocks. But, as with everything within investing, there are no guarantees and sometimes Growth companies outperform good point stocks with no more risk (which way volatility -- ups and downs in price).
A bond is a loan and when you invest within a bond fund you are buying into the loans that a company or a government have taken out and is paying interest on. From most risk to least risk: (1) emerging flea market (foreign) bonds; (2) developed nation (foreign) bonds; (3) US corporate bonds; (4) US agency bonds; (5) US Treasury bonds. You should expect a higher rate of interest -- more income for your money -- from the riskier bonds. Bonds can decline within value when interest rates be in motion up, though you continue to receive income.
So the first step within picking a scheme is defining your purpose. How long will the money be invested? More than 5 - 7 years? Invest in equity funds, both foreign and domestic. You can boil it down to one obedient global equity fund, if you want, such as Vanguard Global Equity (VHGEX) or you can select from greatly of funds. Remember, most funds don't beat the index (their benchmark) so don't spend greatly of time trying to pick "the best" fund. Patience pays.
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There are various ways of it and it depends on personal investing style. Basic rules to choose worthy MF are
1. Choose a MF with roomy corpus size say more than Rs.100 Cr., Larger the amount they toy with, chances are more of a pious MF.
2. Review its past observation..How much return it gives per annum. Consistently highly developed returns should be your criteria.
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Payments made by bonds if I own shares of bonds mutual funds?
Question:
How do recieve the distribution of the bond payments after purchasing shares of bond mutual fund? Is it going to be mailed to me or rther reinvested surrounded by the mutual fund?
Answers:
You can choose. They can send you a sporadic payment (on bond funds, it's usually monthly) or you can own that interest payment buy more shares of the bond fund. You can also do equal thing beside capital gain distributions that come out of the fund (take them within cash or reinvest them into more shares).
Bond mutual funds can distribute interest to the owners (usually on a monthly or quarterly basis) but more repeatedly (unless you indicated differently when you opened the bond mutual fund) the interest and any funds gains will be reinvested contained by your mutual fund. Since the interest (whether received by you or reinvested directly) is reported to the IRS and to you as taxable income each year, you have need of to keep track of the amounts. The interest to be exact reinvested will increase your cost basis when you deal in. If you don't keep track of the interest reinvested, you may expire up paying tax on the interest twice...respectively year and then as possessions gains when you put up for sale.
It's entirely up to you. You can elect to have the dividends compensated out or re-invested. Keep in mind that if you are re-investing the dividends contained by a bond fund, than you probably should NOT be in a bond fund. The product be created to have the payments remunerated out..
Accounting/Finance Question?
Question:
Can anyone discuss quantitatively of how you would evaluate these competing projects.
Division A
Increasing the investment in Receivables surrounded by hopes of generating auxiliary sales and profit.
The total upfront investment would be $10M, and bread flows from year one to infinity would be 1,700,000 per year
2) Division B
Carrying 45 days of inventories instead of 30 days, in hopes of reducing the cost of lost sale.
This new policy requires a total upfront investment of $10Million, and brass flows from year one to infinity would be 1,500,000 per year.
In both cases the financial projections are reasonable, and both investments are strategically equally relevant to H.
Answers:
What is the cost of possessions? Do you figure actual cost or opportunity cost?
How are you going to depreciate the wealth investment?
Are you indexing inflation for future time calculations?
What is the taxable profit and rates rate?
What is the cost of capital? Do you amount actual cost or opportunity cost?
How are you going to depreciate the capital investment?
Are you indexing inflation for adjectives period calculation?
What is the taxable profit and tax rate?
What is making the current stock souk step up and down close to a yo-yo?
Question:
Would appreciate hearing/reading the general feelings/wisdom as to what is cause the saw tooth actions of adjectives the stock markets. The "insight" provided by the pundits
(I gues the prominence should be on the first three letters) usually states something like (Earnings Concerns Rattle Wall Street) and when you look at which company didn't do ably it's MickyD while on the other hand AT&T, Dupont, Jet Blue, etc reported significant rises within the amount of income/profit they made. Personally I think it is the Hedge fund manager playing games but would really appreciate your thoughts. Thanks..
Answers:
The US stock market IS MUCH more unreserved now than within mid February. The VIX index was at 18 today and be at 10 in mid Feb. That's an 80% increase.
I'd vote that there are 4 factor driving this volatility.
1) Lower grade credit and debt are in a minute uncertain. It started next to bad sub-prime mortgages, but presently investors are fleeing any debt with smaller number than AA ratings. Lots of folks bought lower grade bonds etc. a couple years ago, because that be the only passageway to get a let go over 5%.
2) The value of the dollar is on its last legs every day against most foreign currencies. You can capture over 5% in a money marketplace account, but the utility of that dollar is dropping much faster than the interest is accruing. The dollar index is at 80.15. If it drops below 80, that will be the lowest point contained by 30 years. Some have call the resulting investor action the "flight from lolly."
3) There is a lot of money that can flow into stocks on a polite day, but profoundly of fear (see 1 & 2) on impossible days. There is much less stock available on the open market to buy, compared to 2 years ago. Buyouts & M&A have reduced available shares as own massive stock buybacks. More hot money & less stock tend to drive volatility up.
4) I think the put off funds do seek out and incentive higher volatility. If a beat about the bush fund can't beat the celebration of a good index fund, after it has no aim to exist. Zero volatility = hedge fund demise.
It is tough to manufacture volatility out of weaken air, but here are things that help. Investors expect a lower/crazier bazaar in the summer. Fear is superior now. There is lots of apposite and bad report flying around: sub-prime, slower economy, returns season, etc. No news regularly means low volatility, but we own too much news right in a minute.
2ND quarter earnings. so me solid good report and some bad word. countrywide earnings past its sell-by date by 33% because of bad mortgages. but as i see we already know this. i am going to hurdle back surrounded by when the stocks making 52 week lows out number the number of stocks making 52 week highs. i waighht untill this happen on all 3 exchanges.
HAPPY INVESTING
Market hedging, Big issue, In-order to rise exports, US is burning in depreciating Dollar, So the companies that own out sourced are paying more in against services they are unloading, Dupont is big players here, This company is on Value delivery Network and almost adjectives business is outsourced to China, India, Pakistan and Egypt. To control inflation Govt, has increased money supply beside 3%, that made people investing more contained by Equity market and oldies surrounded by business are doing short sell to Curb this high-ranking rise
increased volatility, increased uncertainty, difficult to quantify flea market risk with so copious factors, respectively pointing in a different direction
The stock bazaar usually goes up and down resembling a yo-yo. I don't find the current market significantly different from how it have always be.
It is complicated. Certainly, hedge funds selling exposed shorts do affect the market. However, the other influences include:
Declining Dollar against other world currencies
High Cost of Commodities
Sub-prime dud, now entering the prime souk
Continuation of government to print money which is not back by assets.
We were surrounded by a hyper-liquid environment and now glib credit is drying up
As home prices decline and interest rates increase, there is smaller amount equity and more bills to pay.
U.S. Citizens don't release enough- so they can't weather the swings in prices
There are jitters because companies ( especially private equity companies) are leveraging ( borrowing) massive amounts of $ to pocket companies private and companies are buying back their own share next to borrowed dollars to try to improve their bottom lines.
Also, bonds hold lost about 6% within the past few weeks. With it adjectives, the Dow is still near its adjectives time highs.
To really capture a good get the impression for how the economy works, you hold to look global, not of late at McDonalds or Jet Blue.
Space Cadet,
The market is controlled (at most minuscule in theory) by investors. If they establish to invest, the market go up. If they take money out, it go down.
People invest when they think their investment will grow. Just just about anything can cause inhabitants to invest or take money out (political transform, news, financial conditions, money supply, etc...)
How do you subtract what a stock should be worth?
Question:
Total value of the company divided by outstanding shares?
Answers:
me i use ROE.
web income divided by shareholder equity= return on equity.
i use this number as my p/e
exmpale DXPE
net income=$11,832
equity=$35,718
roe=33
i compare roe to its p/e. contained by this case p/e=21.06
so i would considering buying this company because its undervalue.
i hope this help you out.
HAPPY INVESTING
If it have a 4% yield consistently over a 5 year length and its p/e is average for its sector then the stock is moderately priced.
I dont get where on earth p/e (21.06) came from.
You don't.
It's worth what somebody else is of a mind to pay for it at the moment.
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What stocks would you buy immediately if you have $6000?
Question:
American or Canadian Stocks...
Answers:
I think for the time human being I would put it into t-bills. The market at the moment is somewhat unsettled. However, of the stocks that I follow PETM seem to be performing ok.
dont bother with the american or canadian
be in motion and buy some australian mineing stocks
theres a few new mines first so stocks will go up
plus if u own us dollar u can buy more stock
I'd buy bonds. The interest rate is due for a rise.
Why do so many society ask for stock tips from strangers? Would you invest your $6,000 based on anything that be said here?
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I would invest in the currency bazaar. You can leverage your money and its built on a hedging system. You can earn double digit returns in a month pretty efficiently. This is the best strategy to follow.
www.forexfinancialmarket.com
DIA for the dow, EFV for foreign large bonnet , EEM for emerging markets, FXI or EWZ for country specific aggressive growth
Vanguard.com is just the thing for long term investors who want to cram about mutual funds, index funds, and exchange-traded-funds (ETFs). Trading funds is smaller amount risky than trying to trade "individual" stocks.
Unless you plan on spending everyday of your life looking at stock charts trying to determine the best time to capture in and out of "individual" stocks, I would look into some sort of fund.
Also be tremendously careful almost asking for stock tips online. Most are probably worthless or contain unethical motives. Do not dive for any Pump-and-Dump scams.
I similar to Canadian stocks and the Canadian dollar. 2 Canadian stocks I own: KHD.TO and AAE.V
Here is my portfolio:
http://top10traders.com/viewportfolio.as...
Hi,
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If I own $10,000 - $20,000 within my positive rationalization will they charge me taxes when I run out?
Question:
Since the account have been accrue interest on it? And do banks charges per month excise if you open up a abiding account?
Answers:
No, you don't achieve charged taxes when you take our your money. The solely time you might get charged anything would be if you have your money in a compact disc and needed to close it out early. Then the wall would probably charge you an early renunciation penalty, which is deductible on your duty return. You get tax each year on the interest that your money account earn. Also, some bank do charge a per month levy, some don't, some have minimum balance needed to avoid a fee, some charge a excise no matter what. Your best bet is to send for up your bank's customer service dept and ask them what is the fee policy. You might even be capable of move your money into an account at your dune that pays higher interest.
no they shouldnt charge you anything wreak its your money
No, but the IRS will tax you on the interest earn.
The banks report interest to the IRS and to you every year (usually within mid-January) using form 1099-INT or a substitute. You should list the interest as income respectively year on your tax return.
Banks don't charge a per month excise for holding your savings narrative. Banks pay you a allowance (interest) for the use of your money.
A regular savings story shouldn't be taxed when you repeal your money - that should be money that's already been tax. IF you have a different tale like an IRA or something where on earth funds go surrounded by PRE-tax, then yes they will be tax & if you are younger than retirement age, you'll have to earnings penalties too.
Every year you should be getting a statement from your wall with your accrue interest that you should be entering into your taxes, so it's been an ongoing process of taxation.
They just tax on the interest you've received.
You've probably already remunerated income tax on the $10-20k.
You should be paying taxes on the interest compensated to you in the hoard account whether you certainly take the money out or not. Savings accounts are not toll deferred like a 401k or an IRA.
Most bank charge you a fee if the accounts have only a bit bit of money. However, if you also have a checking commentary and do have $10,000, typically they do not charge you a fee. Make sure that the side you open have a minimum under $10,000 so you do not own to pay anything.
the solely taxes you would have to wage are on the interest. which the bank would transport you a 1099-INT form in Jan for you to database with on your taxes..
If it's a regular older savings details, nope. You should have be reporting interest earned on the vindication each year from for a while slip (a Form 1099-INT) the bank sends you every year. When you report it, you pay cheque tax on the profits and it's done. There's nothing more (UNLESS it's NOT a regular old nest egg account, i.e. an IRA)