1. Bud Abbott purchased shares of Scio Corporation stock for $30.85 per share. one year later his stock has a market price $34.91 per share. The stock pays an annual dividend of $0.40 per share. What is Bud’s returns on investment after one year?
2. Martha Run buys a new duplicating machine for $20,000 with a residual value of $2,000 on January 5. Its estimated life is 5 years. Calculate the book value at the end of year 1 using double declining balance.
3. Price is the amount of money that is charged for “something” of value. Provide three examples of specific product for which you would gladly pay more. For each product, provide a different reason.