Alex purchases 100 stocks in a company that pay dividends of $10 every year for the next 5 years. However, the prevailing interest rates at which he can discount future earnings changes from 4% in the first 3 years to 6% in the next 2 years. What is the present value of the dividend income?
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- Jonathan purchased some corporate stock 8 years ago for $12,000. He received quarterly dividends of $225 at the end of each quarter for the first 5 years, nothing for the sixth year, and $250 at the end of each quarter for the last 2 years. Immediately after receiving the last quarterly dividend, Jonathan sold the stock for $15,385. What was his annual rate of return? (IRR) Round your rate to the nearest tenth of a percent.Allan decides to invest in a new company which would allow him to receive $ 250,000 at the end of each year for the next 5 years. He purchases 100,000 shares at the price of $ 6.50. What is the NPV of a single share, if the interest rate is 15% per year?What is Rate of Return? Adam is a retail investor and decides to purchase 10 shares of Company A at a per-unit price of $20. Adam holds onto shares of Company A for two years. In that time frame, Company A paid yearly dividends of $1 per share. After holding them for two years, Adam decides to sell all 10 shares of Company A at an ex-dividend price of $25. Adam would like to determine the rate of return during the two years he owned the shares.
- Kevin owns 1 share of Acme, Inc. stock. He purchased the stock three years ago for $27. The stock is currently trading for $29.50 per share. The stock has paid the following dividends over the past three years. Year 1) S 1.50 Year 2) $2.00 Year 3) $2.50 What is the compounded rate of return (IRR) that Kevin has earned on this investment?One year ago, Richard purchased 40 shares of common stock for $10 per share. During the year, he received one dividend payment in the amount of $0.50 per share. If the stock currently is worth $9 per share, what yield did Richard earn on his investment for the year?Amy purchased a stock at $54 per share. She received quarterly dividends of $0.80 per share. After one year, Amy sold the stock at a price of $54.25 a share. What is her percentage holding period return on this investment?
- Steven purchased 1000 shares of a certain stock for $26,800 (including commissions). He sold the shares 4 years later and received $34,200 after deducting commissions. Find the effective annual rate of return on his investment over the 4-year period. (Round your answer to two decimal places.) %/yearAntonia invests $2,000 in the stock market, and the value of her stock grows at an 8% rate for the next three years. What is the value of her investment after three years? $2,080 $2,480 $2,519 $2,640 $2,780Bob has been investing $4, 750 in stock at the end of every year for the past 10 years. If the account is currently worth $73, 240, what was his annual return on this investment?
- Dean invests 46 dollars at the end of this year into the stock market, which is expected to earn 8% per year. Dean will increase the amount he invests in the stock market by $10 per year. Assume Dean retires after 41 years. How much money are Dean's investments worth at the end of 41 years? For the sake of simplicity, assume Dean makes his last investment at the end of year 41. (note: round your answer to two decimal places; do not include spaces or dollar signs.)An Investor buys common stock in a firm for $1000, At the end of the first year and overy year thereafter, she receives a' dividend of $100; which she imtmediately invests in a savings and loan institution that pays 5 percent interest compounded annually, At the end of the tenth year, just after recoiving her dividend , she sells the stock for $1200. What is the rate of interest (on an annual compounding basis) yielded by this investment program?Bob has been investing $2,250 in stock at the end of every year for the past 10 years f the acourt amt on $34, 780, what was his annual return on this investment?