HomeworkLib
Question

Suppose you buy stock at a price of $77 per share. Four months later, you sell it for $82. You also received a dividend of $0

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Total Return on stock - (82-77)+0.76 = $5.76 over a period of 4 months

return - 5.76 / 77 = 7.48%

Annualized return = 7.48 * 12 / 4 = 22.44 %

0 1
Add a comment
Know the answer?
Add Answer to:
Suppose you buy stock at a price of $77 per share. Four months later, you sell...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Suppose you buy stock at a price of $65 per share. Five months later, you sell...

    Suppose you buy stock at a price of $65 per share. Five months later, you sell it for $69. You also received a dividend of $0.72 per share. What is your annualized return on this investment? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Annualized return %

  • Suppose you buy stock at a price of $33 per share. 4 months later, you sell...

    Suppose you buy stock at a price of $33 per share. 4 months later, you sell it for $38. You also received a dividend of $0.64 per share. What is your annualized percentage return on this investment?

  • Problem 2-21 Annualized Returns (CFA1) Suppose you buy stock at a price of $81 per share....

    Problem 2-21 Annualized Returns (CFA1) Suppose you buy stock at a price of $81 per share. Three months later, you sell it for $87. You also received a dividend of $O.80 per share. What is your annualized return on this investment? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Annualized return

  • Suppose you bought 700 shares of stock at an initial price of $43 per share. The...

    Suppose you bought 700 shares of stock at an initial price of $43 per share. The stock paid a dividend of $0.40 per share during the following year, and the share price at the end of the year was $44. a. What is the capital gains yield? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) b. What is the dividend yield? (Do not round intermediate calculations. Enter your answer as a percent...

  • Suppose you bought 500 shares of stock at an initial price of $44 per share. The...

    Suppose you bought 500 shares of stock at an initial price of $44 per share. The stock paid a dividend of $.42 per share during the following year, and the share price at the end of the year was $45. a. What is the capital gains yield? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)   Capital gains yield % b. What is the dividend yield?...

  • Suppose you bought 900 shares of stock at an initial price of $44 per share. The...

    Suppose you bought 900 shares of stock at an initial price of $44 per share. The stock paid a dividend of $0.42 per share during the following year, and the share price at the end of the year was $39. a. Compute your total dollar return on this investment. (A negative value should be indicated by a minus sign.) b. What is the capital gains yield? (A negative value should be indicated by a minus sign. Do not round intermediate...

  • Suppose you purchase 900 shares of stock at $74 per share with an initial cash investment...

    Suppose you purchase 900 shares of stock at $74 per share with an initial cash investment of $33,300. The call money rate is 5 percent and you are charged a 1.5 percent premium over this rate. Ignore dividends. a. Calculate your return on investment one year later if the share price is $82. Suppose instead you had simply purchased $33,300 of stock with no margin. What would your rate of return have been now? (Do not round intermediate calculations. Enter...

  • You buy 100 shares of Apple common stock at a price of $63.93. One quarter later,...

    You buy 100 shares of Apple common stock at a price of $63.93. One quarter later, you collect a dividend of $1.14 per share and sell your stock for $69.49 per share. What is the rate of return on your investment? (You may ignore commissions and taxes.) Do not round at intermediate steps in your calculation. Express your answer in percent. Round to two decimal places. Do not type the % symbol. If the return is negative, then include a...

  • Suppose you buy a round lot of Francesca Industries stock (100 shares) on 60 percent margin...

    Suppose you buy a round lot of Francesca Industries stock (100 shares) on 60 percent margin when the stock is selling at $30 a share. The broker charges a 8 percent annual interest rate, and commissions are 4 percent of the stock value on the purchase and sale. A year later you receive a $0.70 per share dividend and sell the stock for $40 a share. What is your rate of return on Francesca Industries? Do not round intermediate calculations....

  • 1.Suppose you bought 900 shares of stock at an initial price of $44 per share. The...

    1.Suppose you bought 900 shares of stock at an initial price of $44 per share. The stock paid a dividend of $0.42 per share during the following year, and the share price at the end of the year was $39. a. Compute your total dollar return on this investment. (A negative value should be indicated by a minus sign.) b. What is the capital gains yield? (A negative value should be indicated by a minus sign. Do not round intermediate...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT