Question

1. Jane purchased 100 shares of Zodcom on March 1, 2011 for $131.52 per share. The company instituted a 3:1 stock split 3 months later, and Jane then sold her shares for $49.03 per share. What was Jane's holding period return on this investment?

   		56.08%
   		10.59%
   		11.84%
   		37.28%

1 points   

QUESTION 2

1. Jane purchased 100 shares of Zodcom on March 1, 2011 for $123.81 per share. The company instituted a 3:1 stock split 7 months later, and Jane then sold her shares for $46.33 per share. What was Jane's holding period return on this investment?

   		37.42%
   		23.89%
   		10.92%
   		12.26%

1 points   

QUESTION 3

1. Magdalena purchased 100 shares of BQM on 1/1/2014 for $158.59 per share. During the year, the stock paid a dividend of $0.96 on 2/15/2014, another dividend of $0.96 on 5/15/2014, another dividend of $1.02 on 8/15/2014, and another dividend of $1.02 on 11/15/2014. Magdalena sold the shares on 12/31/2014 for $166.52 per share. What was Magdalena's holding period return for this investment?

   		5.64%
   		7.14%
   		7.50%
   		4.80%

1 points   

QUESTION 4

1. Magdalena purchased 100 shares of BQM on 1/1/2014 for $117.29 per share. During the year, the stock paid a dividend of $0.71 on 2/15/2014, another dividend of $0.71 on 5/15/2014, another dividend of $0.76 on 8/15/2014, and another dividend of $0.76 on 11/15/2014. Magdalena sold the shares on 12/31/2014 for $145.44 per share. What was Magdalena's holding period return for this investment?

   		24.64%
   		21.37%
   		26.50%
   		25.20%

Answer 1

Question 1

Investor's total return comprises of 2 elements-capital gain/loss (change in market price) and dividend payment.

HPR = (Sale value - cost of acquisituion + coupon pay) / cost of acquisituion

= ((3*100*49.03)-(131.52*100))/(131.52*100)*100

= (14709-13152)/13152 *100

= 1557/13152 *100

= 11.84%

Question 2

HPR = (Sale value - cost of acquisituion + coupon pay) / cost of acquisituion

= ((3*100*46.33)-(123.81*100))/(123.81*100)*100

= (13899-12381)/12381*100

= 1518/12381*100

= 12.26%

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