A stock pays $0.2 dividend per share annually. An investor bought one share of stock at $2 at the beginning of last year. At the end of last year, stock price became $2.4 and she bought another one share of stock. At the end of this year, she sold both shares at $3 per share. What is the time weighted geometric return? 35.26% 30.22% 31.66% 38.01%

A stock pays $0.2 dividend per share annually. An investor bought one share of stock at $2 at the beginning of last year. At the end of last year, stock price became $2.4 and she bought another one share of stock. At the end of this year, she sold both shares at $3 per share. What is the time weighted geometric return? 35.26% 30.22% 31.66% 38.01%

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter7: Common Stock: Characteristics, Valuation, And Issuance

Section: Chapter Questions

Problem 17P

See similar textbooks

Similar questions

Suppose you bought a stock for $50 on January 1st. Six months later you received a dividend of $1.10 and you sold the stock for $53.30. Given this information, annualized return is ______________. answer is 17.6%
You invested in a stock with a price of $46.92. You sold the stock a year later for $52.86. During the year, you received a dividend of $0.85. What is your return? 14.47% 10.85% 11.24% 12.85% 12.66%
At the beginning of the year, you purchased a stock for $35. Over the year the dividends paid on the stock $2.75 per share. a. Calculate the return if the price of the stock at the end of the year is $30 b. Calculate the return if the price of the stock at the end of the year is $40
At the beginning of the year, you purchased a share of stock for $35. Over the year the dividends paid on the stock were $2.75 per share. (LG 8-5)a. Calculate the return if the price of the stock at the end of the year is $30.b. Calculate the return if the price of the stock at the end of the year is $40
You invest in Sandhill Corp. stock at a price of $63.50 per share. At the end of one year, you sell your shares for $71.50 per share and you received a $1.60 per share dividend during the year. What is your return on investment for this period? 15.12% 13.76% 10.08% 12.16%
An investor buys one share of stock for $100. At the end of year one she buys three more shares at $89 per share. At the end of year two she sells all four shares for $98 each. The stock paid a dividend of $1.00 per share at the end of year one and year two. What is the investor's time-weighted rate of return? (A) 11.24%. B) 0.06%. C) 6.35%.
An investor purchases a stock for $50 and over the next year, receives a $0.75 dividend. At the end of the year, the stock is priced at $53. In the second year, the stock pays a $1.00 dividend and at the end of the year the stock is priced at $51. a. Compute the dollar return for each year. b. Compute the percentage return for each year.
At the start of the year, you purchased a single stock for $49.15 and one year later received a dividend of $2.88 and then sold the stock for $54.91. What was your total nominal return?
One year ago, you purchased a stock for $72.42. Today it is selling for $66.68. During the year you were paid dividends of $4.40. What is your percentage return on this investment? O 3.67% O 14.00% O 2.29% O -1.85% O 15.21%
You purchased a stock at a price of $24. A year later the stock is worth $29, and during the year it paid $1.0 in dividends. What was the rate of return you earned on this investment? Show your answer in percent (but without the percent sign), and to one decimal place. E.g. 4.67% should be inputted as 4.7
You bought a stock for $76.81 and sold it after 4 years for $100.37. What is the average compound annual return? Responses 7.58% 10.25% 6.92% 9.37%
You bought a stock at the beginning of the year for $986 per share. At the end of the year, the price is $905. At the end of the year, you received a $7.50 dividend per share. What are the dividend yield, capital gains yield, and total percentage return?