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Considering Carlos's dividends and capital gains, which statement is true? Carlos's net profit from his investment is $65, and the pre-tax ROI is 26%. Carlos's net profit from his investment is $65, and the pre-tax ROI is 15%. Carlos's net profit from his investment is $55, and the pre-tax ROI is 26%. Carlos's net profit from his investment is $55, and the pre-tax ROI is 15%?

1) Carlos's net profit from his investment is $65, and the pre-tax ROI is 26%.
2) Carlos's net profit from his investment is $65, and the pre-tax ROI is 15%.
3) Carlos's net profit from his investment is $55, and the pre-tax ROI is 26%.
4) Carlos's net profit from his investment is $55, and the pre-tax ROI is 15%.

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Final answer:

The data provided does not match the options given for Carlos's net profit ($65 or $55) or the pre-tax ROI (26% or 15%). The net profit according to LibreTexts is $11,980.00, which isn't an option listed in the question. Additional information is needed to accurately determine the pre-tax ROI and confirm the net profit.

Step-by-step explanation:

To determine the correct option for Carlos's net profit from his investment and the pre-tax Return on Investment (ROI), we first need to understand what each term means. ROI is a measure of the profitability of an investment and is calculated as a percentage. It is the ratio of net profit to the initial investment amount.

According to the LibreTexts reference provided, Carlos's gross profit from the sale of his stock is $12,000. After the company charges $20.00, the net profit is adjusted to $11,980.00. However, this net profit does not match the net profit options given in the question, which suggests that there may be an error or additional information not provided.

Given the options are for a net profit of either $65 or $55, we cannot directly determine the pre-tax ROI or the net profit from the given data. The calculation of the pre-tax ROI would typically involve dividing the net profit by the initial investment and then multiplying by 100 to convert it to a percentage. Without the accurate initial investment amount, we cannot confidently provide the correct option.

The information from the question about dividends and capital gains from Table 17.2 refers to the history of stock market returns and how dividends and capital gains have varied over time. However, again, there are not enough specific details given in the question to pinpoint the correct net profit and pre-tax ROI for Carlos's investment.

Therefore, without the initial investment amount or any additional relevant details, we must refrain from choosing among the presented options, as none of them correspond to the net profit amount given in the reference ($11,980.00). To provide an accurate answer, more information is required about the initial investment amount and any specific details related to the dividends and capital gains earned by Carlos.

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