You buy a stock for $65. The following year you sell it at again and receive a price that is $9 higher than what you paid. You also receive a dividend of 9. Based on the given numbers, your rate of return was. %. M Give your answer with two decimals and with no $ or %. Note for instance that 10% 0.1 10 should be written as 10.00. B Your Answer: Answer

You buy a stock for $65. The following year you sell it at again and receive a price that is $9 higher than what you paid. You also receive a dividend of 9. Based on the given numbers, your rate of return was. %. M Give your answer with two decimals and with no $ or %. Note for instance that 10% 0.1 10 should be written as 10.00. B Your Answer: Answer

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A MOVING toO anotner question will save this response. Question 15 You bought a stock for $39 and you received dividends of $4. The stock is now selling for $47. What is your total percentage return? (please answer in decimal numbers, ie., use 0.05 in stead of 5%) A Moving to another question will save this response. P Type here to search 9.
eBook Your broker offers to sell you some shares of Bahnsen & Co. common stock that paid a dividend of $3.00 yesterday. Bahnsen's dividend is expected to grow at 5% per year for the next 3 years. If you buy the stock, you plan to hold it for 3 years and then sell it. The appropriate discount rate is 11%. a. Find the expected dividend for each of the next 3 years; that is, calculate D1, D2, and D3. Note that Do = $3.00. Do not round intermediate calculations. Round your answers to the nearest cent. D1 = $ D2 = $ D3 = $ b. Given that the first dividend payment will occur 1 year from now, find the present value of the dividend stream; that is, calculate the PVs of D1, D2, and D3, and then sum these PVs. Do not round intermediate calculations. Round your answer to the nearest cent. $ c. You expect the price of the stock 3 years from now to be $60.78; that is, you expect P3 to equal $60.78. Discounted at an 11% rate, what is the present value of this expected future stock price? In other…
TJMaxx (TJX) stock is currently selling for $796.96. You are thinking about buying it and you hope to sell it for $1141.71 in 4 years. What is the implied return? Round to 2 decimal places. Include a dollar sign ($) or percent (%) as appropriate.
Suppose you bought XYZ stock 1 year ago for $6.54 per share and sell it at $2.79. You also pay a commission of $0.35 per share on your sale. What is the total return on your investment? The total return is %?
1. You purchase 100 shares for $50 a share ($5,000), and after a yearthe price rises to $60. What will be the percentage return on yourinvestment if you bought the stock on margin and the marginrequirement was? a.25 percent b.50 percent c.75 percent 2. Repeat Problem 1 to determine the percentage return on yourinvestment but in this case suppose the price of the stock falls to$40 per share. What generalization can be inferred from youranswers to Problems 1 and 2? 3. How many years will it take for 197000 dollars to grow to 554000 dollars if it is invested in an account with a quoted annual interest rate of 8 percent with monthly compounding interest?
Your friend told you about a stock that they think will sell for $154 in one year. They do not pay a dividend yet and it selling for $198.3 today. What is the expected return. Convert to a percent then round to 2 decimal places. Answer:
One year ago you bought the common stock of Mizuho at ¥1050 in Tokyo Stock Exchange. The price is ¥1000 today. You received a dividend of ¥120 per share during the period. The exchange rate was ¥100 = $1 when you bought the stock and it is ¥80 = $1 today. Calculate the realized dollar rate of return on the stock if you sell the stock today. Select one: -6.89% O b. 28.11% O C. 33.33% O d. 23.13% a.
Suppose you are thinking of purchasing the SunStar’s common stock today. If you expect SunStar to pay $0.80 dividend at the end of year one and $1.6 dividend at the end of year two and you believe that you can sell the stock for $15 at that time. If you required return on this investment is 10%, how much will you be willing to pay for the stock? a. $13.95 b. $14.44 c. 14.19 d. $15.51
TJMaxx (TJX) stock is currently selling for $805.02. You are thinking about buying it and you hope to sell it for $1082.95 in 5 years. What is the implied return? Answer:
If you originally bought a share of stock for $27, and in one year it paid a dividend of $4 and now costs $33. You sell the stock today for $33, what is your percentage return? (answer in percent, but without the percent sign, e.g. "8.25" is 8.25%)
How much would you be prepared to pay for a share in 3 years’ time that pays a $3.51 dividend each year constantly ? Assume the required rate of return is expected to remain constant at 5.17 per cent per year. Round your final answer to 2 decimal places. E.g. if the final value is $12345.8342, please type 12345.83 in the answer box (do not type the dollar sign).
What is the holding period return per year for a stock that you bought for $70 pays you a $6 dividend midyear each year for two years and you sell for $78? Hint: if you use TVM your payment is $6

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