You purchase 800 shares of stock at a price of $20 per share. One year later, the shares are selling for $23 per share. In addition, a dividend of $2 per share is paid at the end of each year. What is the capital gains yield for the investment? O 8.5% 10.0% O 25.0% O 20.0% 15.0%
Q: You buy 100 shares of stock for $50 per share. The stock pays a dividend of $2 per share per year.…
A: Data given: Purchase price (P0)= $50 per share Dividend per share per year = $2 i.e., D1=$2, D2= $2…
Q: You bought 100 shares of stock at $25 each. At the end of year 1 you received $300 in dividends and…
A: An annual rate of return refers to the rate at which an investment earns profit during a year. When…
Q: Malko Enterprises’ stock currently sell for $150. They pay an annual dividend of $10, and you can…
A: Current price of stock = $ 150 Annual dividend = $ 10
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A: Holding period is defined as the total amount that a person earns for keeping an assets for a period…
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A: The Price of the stock is computed by computing the present value of future cashflows generated over…
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A: In this question we require to calculate the required return on Artivel Preferred Stock from the…
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A: A dividend is a sum of amount which is paid by a company on a periodic basis to its shareholders. A…
Q: Hudson Corporation will pay a dividend of $3.10 per share next year. The company pledges to increase…
A: A model that helps to evaluate the value of the stock with the assumption that the dividend will…
Q: You purchase 100 shares of stock for $42 a share. The stock pays a $2.5 per share dividend at…
A: Purchase price of stock=$42Dividend=$2.5Ending stock price=$45Inflation rate=4%
Q: The market value of the stock of shine corporation at the beginning of year one is 120 per share at…
A: Income = 24 End of period value = 130 Initial value = 120
Q: You expect a share of stock to pay dividends of $1.00, $1.25, and $1.50 in each of the next 3 years.…
A: Stock price refers to the present value of the future expected cash flows. Stockholders receive cash…
Q: Jeffrey Lash, an investor with a required rate of return of 15%, is looking to buy shares of GPB…
A: The question can be solved as follows:
Q: You buy 100 shares of stock for $50 per share. The stock pays a dividend of $2 per share per year.…
A: Shares are the units of the total stock of a company which shows the fractional ownership of the…
Q: An investor buys stock for $10,000 and earns dividends of $25” during the course of the year. At the…
A: Calculation of Capital Gains Yield:The capital gains yield is -7%.Excel Spreadsheet:
Q: You purchased a share of a company five years ago for $75 per share and the current price is $80 per…
A: Investing is a critical component of wealth growth. It enables the investor to fight inflation,…
Q: You invest in Sandhill Corp. stock at a price of $63.50 per share. At the end of one year, you sell…
A: The return on investment can be computed as income earned on one share divide by market price per…
Q: Last year you bought 100 shares of National Corporation common stock for P53 per share. During the…
A: The rate of return earned over the year is calculated as capital gain yield plus the dividend yield
Q: Coolibah Holdings is expected to pay dividends of $1.30 every six months for the next three years.…
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Q: You bought 400 shares of Heavy Metal Inc. at ₱300 per share over the year, you received ₱75 per…
A: The annual rate of return is the annual income earned from an investment which is considered in…
Q: An investor purchased 500 shares of Electric Shaver Corporation stock at a price of $22.50 per…
A: Formula:
Q: Six months ago, you purchased 1,100 shares of ABC stock for $21.20 a share and have received total…
A: Number of shares (N) = 1100 Purchase price (P0) = $ 21.20 Total dividend payments per share (D) = $…
Q: This morning you purchased a stock that just paid an annual dividend of $2.00 per share. You require…
A: Price of sharen = Dn+1 / ( Required return - Growth rate )
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A: Expected value represents the likelihood worth of initial investment after considering the probable…
Q: Last year you bought 100 shares of NC Corp. common stock for P53 per share. During the year you…
A: The rate of return is simply calculated as capital gain yield plus dividend yield
Q: What was your total loss on this investment
A: Margin: It refers to the amount borrowed from the broker for purchasing a security/investment. It…
Q: Suppose you have $10,000 in cash to invest. You decide to sell short $5000 worth of Earlham stock…
A: Investment amount = $10000 Short sell amount = $5000 Treasury bill interest rate = 5% P0 = $40 P1 =…
Q: You purchase 800 shares of stock at a price of $20 per share. One year later, the shares are selling…
A: The capital gains yield is calculated as change in share price over the holding period divided by…
Q: White Wedding Corporation will pay a $3.35 per share dividend next year. The company pledges to…
A: using Dividend distribution model
Q: A Company paid its first annual dividend yesterday in the amount of $0.15 a share. The company plans…
A: Information Provided: Year 1 dividend = $0.30 ($0.15*2) Year 2 dividend = $$0.60 ($0.30*2) Year 3…
Q: suppose a company pays a Rs. 2.5 annual dividend on its common stock in a single annual installment,…
A: The current stock price can be calculated using divided discount model. As per this model stock…
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A: The initial margin on an investment is the starting amount that an investor who wishes to open a…
Q: An investor receives an 15 percent total return by purchasing a stock and selling it after one year…
A: The Return is calculated with the help of following formula Return = (P1 - P0) + Dividend…
Q: This year, Hope Corporation paid a dividend of $0.50 per share. The company expect dividends to…
A: Value of share price = [D0 x (1 + g)]/(r - g) D0 = Current dividend g = Growth rate r = required…
Q: You bought 100 shares of IBM stock last year for $75, you received a $7 per share divided during the…
A: The dividend yield on investment is the percentage of dividend received based on the current price…
Q: If you invest $40,000 in a stock whose value grows at 2% per year, your investment is nearest what…
A: The future value of the cash flow is the future worth of a cash flow at a certain rate of interest…
Q: Suppose you bought 150 shares of stock at an initial price of $47 per share. The stock paid a…
A: Capital Gain Yield = Year End Price - Initial PriceInitial Pricex100 Dividend Yield = Dividend per…
Q: can I have this explained? After 20 years, 100 shares of stock originally purchased for $1000 was…
A: The formula to calculate the yield on investment:Yield on investment can be determined using the…
Q: An investor purchased 50 shares of stock in a company for $50 per share. One year later, the…
A: Rate of return = [ Sales - Purchase ] / Purchase
Q: You bought 400 shares of Heavy Metal Inc. at ₱300 per share over the year, you received ₱75 per…
A: Percentage return=selling price+dividendbuying price-1
Q: Seven months ago, you purchased 400 shares of stock on margin. The initial margin requirement on…
A: The conceptual formula used:
Q: You purchased 200 shares of stock at a price of $45.36 per share. Over the last year, you have…
A: Given information : Total number of shares purchased 200 Purchase price of shares $ 45.36…
Q: An investor buys 300 shares of stock selling a $76 per share using a margin of 59%. The stock pays…
A: Number of shares = 300 shares Selling price per share = $76 Annual dividend = $3 Annual interest…
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- An investor receives an 15 percent total return by purchasing a stock and selling it after one year with a 10 percent capital gain. The dividend income during the year is $4. What is the price of the stock currently?Compute the total and annual returns on the described investment. Four years after buying50 shares of XYZ stock for $60 per share, you sell the stock for $4,400. The total return is ??? % The anual return is ??You purchase 100 shares of stock for $25 a share. The stock pays a $3 per share dividend at year-end. a. What is the rate of return on your investment if the end-of-year stock price is (i) $22; (ii) $25; (iii) $26? b. What is your real (inflation-adjusted) rate of return if the inflation rate is 2%?
- You buy a share of stock today for $ 396 and receive quarterly dividends of $2.30 at the end of each quarter for the next 2 years, and sell the stock for $ 405 at the end of two years. What is the annual return on your investment? 4 Round your final answer as a percentage to one decimal place (e.g. 15.8%) AHow much would you be prepared to pay for a share in two years' time when it begins to pay a $0.17 dividend each year and is currently priced at $3? Assume the required rate of return is 8.5% p.a.Company X pays dividend of $2.25 next year. Dividend grows at 5% per year forever. Investor A wants to buy this stock. Investor A expects return of 10%. What is the maximum amount A pays to buy Stock X? a) $47.25 b) $45.00 c) $49.50 d) $40.91
- This year, Hope Corporation paid a dividend of $0.50 per share. The company expect dividends to increase by 4.5% each year forever. If investors require a return of 12%, what is the value of a Hope Corporation share today? a. $6.67 b. $6.97 c. $4.17 d. $7.47 e. $0.50One year ago, you bought a stock for $50.39 a share. You received a dividend of $2.97 per share last month and sold the stock today for $49.58 a share. What is the capital gains yield (in percent) on this investment? Correct pls.An investment has doubled in 8 years. What is the annually compounded rate of return? Select one: a. 7.89% b. 9.05% c. 10.14% d. 5.77% You bought a Tweet Plc. share for $34.50 at the beginning of the year. During the year, the share paid a $1.50 dividend and at the end of the year it traded at $37.50. What is the total return on your investment? Select one: a. 12.75% b. 11.5% c. 14.25% d. 13% The risk-free rate is 8% and the expected return on a market portfolio is 13%. If a share has a beta of 1.2, what is its expected return? Select one: a. 17% b. 15.5% c. 14% d. 16.25% Assume you invest $1 000 at the end of this year, at the end of the second year, and at the end of the third year. How much will you have at the end of the fourth year if interest rates are 5% p.a.? Select one: a. $3,310.12 b. $3,405.54 c. $3,100,21 d. $3,215.41
- Goldstar.com pays a $1 dividend in every six months and will maintain this policy forever. What price should you pay for one share of common stock if you want an annual return of 15% on your investment? O A. $10.00 O B. $6.67 Oc. $26.67 O D. $13.33You just purchased a share of SPCC for $101.You expect to receive a dividend of $6 in one year. If you expect the price after the dividend is paid to be $115, what total return will you have earned over the year? What was your dividend yield? Your capital gain rate? _____________________%.(Round to two decimal places.)AirMas Airlines will pay a RM4 dividend next year on its common stock, which is currently selling at RM100 per share. What is the market required rate of return on this investment if the dividend is expected to grow at 5 percent forever? Select one: A. 4 percent B. 7 percent C. 9 percent D. 5 percent