An investor purchases 1,000 shares of XYZ Corp. @ $20. A year later, she sells the shares for $26. During the year, she had collected total dividends of $1.50. What percentage return did the investor earn?
Q: Henry purchased a stock for $45 a share, held it for one year, received a $2.34 dividend, and sold…
A: To calculate the rate of return we will use the following formula Rate of return = [D+(P1-P0)]/P0…
Q: Tyrone invested a sum of money 10 years ago in an account that paid 2.25% per year compounded…
A: Answer - Formula for Future Value Calculation = FV = Principal / ( 1+i ) t Therefore, Formula…
Q: Ahmad invested $3,000 and purchased shares of a German corporation when the exchange rate was $1.00…
A: Given: Purchased shares of German corporation =$3000 (when exchange rate was $$1.00 = €1.06)Sold…
Q: 4. Sharlene purchases 280 shares of SJS Corporation common stock at ₱6,400 per share. A few months…
A: 280 Shares is a round lot order sumitted on the exchange since number of shares purchased is greater…
Q: Last year at this time, Rohan purchased 2,000 shares at $45/share in Boom Inc. In 2021, he received…
A: To solve the question, we first need to determine the total buy value, total sale value and total…
Q: Ed Delahanty purchased 500 shares of Niagara Corporation stock on margin at the beginning of the…
A: A stock is a financial instrument issued by a corporation to raise equity funds from the general…
Q: Steven purchased 1000 shares of a certain stock for $25,900 (including commissions). He sold the…
A: Given information: Purchase price of stock : $25,900 Selling price of stock : $33,100 Period of…
Q: Three years ago your client had purchased 500 shares of GE for her investment portfolio… As you…
A: A Wash sales is a situation where an investor sells the stock at a loss and within 30 days of the…
Q: Sammy purchased 800 shares of Winn-Dixie at $4.40 per share. Sammy financed 35% of the purchase with…
A: Concept. Annual return is the return that an investment provides during investment tenure. It is…
Q: Timothy invests $5,000 at 17% interest compounded daily for three years. How much does he have in…
A: Future value = Present value(1 + Rate)^Time
Q: Kathy Myers frequently purchases stocks and bonds, but she is uncertain how to determine the rate of…
A: Net present value is the sum of the present value of net of cash outflows and inflows discounted at…
Q: On February 1 of the current year, John learned that she inherited stock under her aunt’s will.…
A: Long term Gain: These are the gain that is generated from selling capital assets owned for more…
Q: Ms. Walsh invested $35,000 in two accounts. one yielding 8% interest and the other yielding 9%. if…
A: Interest rate in account 1 (r1) = 8% Interest rate in account 2 (r2) = 9% Period (t) = 1 year Total…
Q: Kayla purchased a stock for $56 a share and sold it six months later for $62. While she owned the…
A: Holding Period Return : The holding period return means Return on the invested amount from the date…
Q: ason purchased 300 shares of the hodge and mattox energy fund. Each share cost 15.15. Fifteen months…
A: The company issues its equity shares to the public to raise capital and the shareholders would be…
Q: Sarah and James Hernandez purchased 140 shares of Macy's stock at $57 a share. One year later, they…
A: Given, No. of shares = 140 Sell Price = $57 Purchase = $61 Commission paid = $8+$12 =$20 Dividend…
Q: The Jones family received two quarterly dividend payments of $0.17, one quarterly payment of $0.20,…
A: The provided information are: Jones family received two quarterly dividend payments of $0.17 One…
Q: Tom recently received 2,060 shares of restricted stock from his employer, Independence Corporation,…
A: Income or loss:- When a sale amount is more than the actual cost then it is said to be income and if…
Q: Ben bought 200 shares of a stock at php140 a shares.a year later,he sold the stock at 145.50 a…
A: A stock refers to a security that addresses the responsibility for part of an organization. This…
Q: Dev recently sold Protus Corp for $45 after holding back the stock for a year. He received dividends…
A: Holding Period Return of the stock = (Sale Price - Purchase Price + Dividend payments)/ Purchase…
Q: Kathy Myers frequently purchases stocks and bonds, but she is uncertain how to determine the rate of…
A: The difference between the current value of cash flows value of cash withdrawals over time is…
Q: Carmen Santiago decided to invest $12,000 in shares of the AT&T company that pays her 5% in…
A: Internal rate of return (IRR) is a value at which PV of inflows is equal to the PV of outflows, or…
Q: Jessie buys 100 shares of stock at $29.52 per share and then sells the stock 9 months later at…
A: Annual interest or gain is the gain which is calculated on an annual basis by extrapolating the gain…
Q: Kathy Myers frequently purchases stocks and bonds, but she is uncertain how to determine the rate of…
A: 1. Particular Year Cash Flows 14% Factor PV of cash flows Purchase of stock Present 13,000 1…
Q: Accounting
A: Introduction: Passive Activity Rules: Passive activity loss restrictions are a collection of IRS…
Q: Fred owns 25% of Eaton and at January 1, 2020 has a balance in its Investment account of $40,000.…
A: Opening balance: The balance when the accounting period begins. Last period balance carried over to…
Q: William owns 200 shares of Data General stock. He purchased the stock for $20 a share. He sold her…
A: The following information has been provided in the question: Cost of purchase of Data General…
Q: A small retail stock investor purchased 5 shares of GameStop for $85 per share on a Tuesday. Exactly…
A: Formula for nominal rate to be changed into effective rate is:
Q: Jones invests USD 250.000 in a building society account. At the end of the year her account is…
A: Interest = Principal * Rate of interest * Time
Q: Peter, Brian and Marc, three brothers, were co-owners of Bug-Zappers Inc. They each owned 1,000…
A: Here discuss about the details of the capital gain taxable for the agreement between the cross…
Q: Samuel Jenkins made two investments; the first was 13 months ago and the second was two months ago.…
A: Investment 1 - made 13 months ago - The tax rate for long-term capital gains for taxable income of…
Q: Aimee invested part of Php35,000 in a stock paying 9% interest for 2 years and the balance in a…
A:
Q: An engineer invests $50,000 in bonds paying dividends of $1,000 per year for 10 years. At 10 years,…
A: Future worth is the value of present worth of a cash flow to be received on a future date with a…
Q: Chadwick bought 50 shares of Chipotle stock on Nov 1, 2016 for $396.33 per share. He sold the shares…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Perry purchased 100 shares of Ferro, Inc. common stock for $25 per share one year ago. During the…
A: In the given question we need to compute the realized return for perry from following details.…
Q: Kathy Myers frequently purchases stocks and bonds, but she is uncertain how to determine the rate of…
A: >Net Present value or NPV analysis takes into account the present value of future cash flows to…
Q: Felice Navidad purchases 2,000 shares of NOW Technology stock at $4 inChristmas 2008. Four years…
A: Purchase Value = 2000 shares *$4 Purchase Value =$8000 Sell Value = 2000 Shares *$28 Sell Value =…
Q: Jessie B. purchases 450 shares of Smooth Sail Inc. for $50 per share at a time when the initial…
A: Margin trading is a facility which is provided by the broker to the investor that, investor can…
Q: James bought a beachfront house in March 2011 for $140,000. After renting the house out for 3 years,…
A: Sales Consideration $260000 Purchase Price in March 2011 $140000 Capital Gains…
Q: An Investor buys common stock in a firm for $1000, At the end of the first year and overy year…
A: Stock Investment refers to the purchase of stocks with an mindset for holding purchased securities…
Q: Erin purchased stock in JKL Corporation several years ago for $8,750. In the current year, she sold…
A: Shares hold more than one year it means there is a long-term capital gain or long-term capital loss…
Q: Ashley purchased a common stock worth $5,000 in year 1 and another worth $10,000 in year 5. Five…
A: Rate of return states the net amount of gain or loss of the investment over the time period which is…
Q: Kathy Myers frequently purchases stocks and bonds, but she is uncertain how to determine the rate of…
A: As per the question, the initial cost of investment was $ 25000Kathy expects a 13% rate of return on…
Q: Kathy Myers frequently purchases stocks and bonds, but she is uncertain how to determine the rate…
A: The investors try to earn profits by investing in a company. The investors main confusion will be…
An investor purchases 1,000 shares of XYZ Corp. @ $20. A year later, she sells the shares for $26. During the year, she had collected total dividends of $1.50. What percentage return did the investor earn?
Trending now
This is a popular solution!
Step by step
Solved in 5 steps with 2 images
- Last year Vivienne bought 100 shares of Holding Corporation common stock for $43 per share. During the year he received dividends of $1.30 per share. The stock is currently selling for $50 per share. What rate of return did Vivienne earn over the year?Jan purchased 100 shares of Peach Computer stock for $18 per share, plus a $45 brokerage commission. Every 6 months she received a dividend from Peach of 50 cents per share. At the end of 2 years, just after receiving the fourth dividend, she sold the stock for $23 per share and paid a $58 brokerage commission from the proceeds.What annual rate of return did she receive on her investment? Solution: 1. NPW=PW of Benefits - PW of Costs=0 o Number of terms n= o PW of Benefits = (P/A,i*,n)+ (P/F,i*,n); O PW of Costs= 2. Find IRR through interpolation o Try i*=7%, NPW= o Try i*=8%, NPW= o Through interpolation, ROR= % 3. Other Calculations: o Nominal rate r= %; o Effective rate iz= %.One year ago, Regina purchased $1,050 worth of Elite Electrician’s common stock for $42 per share. During the year, Regina received two dividend payments, each equal to $0.05 per share. The current market value of the stock is $44 per share. What yield did Regina earn on her investment during 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?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?Julio purchased a stock one year ago for $27. The stock is now worth $32, and the total return Julio received for owning the stock was 18.5 %. What is the dollar amount of dividends that he received for owning the stock during the year? Round your final answer to nearest whole dollar.
- Kathy Myers frequently purchases stocks and bonds, but she is uncertain how to determine the rate of return she is earning. For example, three years ago she paid $19,000 for 930 shares of Malti Company's common stock. She received a cash dividend of $735 on the stock at the end of each year for three years. At the end of three years, she sold the stock for $22,000. Kathy would like to earn a return of at least 17% on all of her investments. She is not sure whether the Malti Company stock provides a 17% return and would like some help with the necessary computations. Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using tables. Required: 1. Compute the net present value Kathy earned on her investment in Malti Company stock. 2. Did the Malti Company stock provide a 17% return? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the net present value Kathy earned on her investment in Malti…Kathy Myers frequently purchases stocks and bonds, but she is uncertain how to determine the rate of return she is earning. For example, three years ago she paid $17,000 for 910 shares of Malti Company's common stock. She received a cash dividend of $701 on the stock at the end of each year for three years. At the end of three years, she sold the stock for $16,000. Kathy would like to earn a return of at least 9% on all of her investments. She is not sure whether the Malti Company stock provides a 9% return and would like some help with the necessary computations. Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using tables. Required: 1. Compute the net present value Kathy earned on her investment in Malti Company stock. 2. Did the Malti Company stock provide a 9% return? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the net present value Kathy earned on her investment in Malti…Kathy Myers frequently purchases stocks and bonds, but she is uncertain how to determine the rate of return that she is earning. For example, three years ago she paid $24,000 for 980 shares of Malti Company’s common stock. She received a $823 cash dividend on the stock at the end of each year for three years. At the end of three years, she sold the stock for $22,000. Kathy would like to earn a return of at least 10% on all of her investments. She is not sure whether the Malti Company stock provide a 10% return and would like some help with the necessary computations. Required: 1. Compute the net present value that Kathy earned on her investment in Malti Company stock. 2. Did the Malti Company stock provide a 10% return?
- 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.Kathy Myers frequently purchases stocks and bonds, but she is uncertain how to determine the rate of return that she is earning. For example, three years ago she paid $23,000 for 500 shares of Malti Company's common stock. She received a $460 cash dividend on the stock at the end of each year for three years. At the end of three years, she sold the stock for $30,000. Kathy would like to earn a return of at least 13% on all of her investments. She is not sure whether the Malti Company stock provide a 13% return and would like some help with the necessary computations. Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using tables. Required: 1. Compute the net present value that Kathy earned on her investment in Malti Company stock. 2. Did the Malti Company stock provide a 13% return? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the net present value that Kathy earned on her investment…Beth bought stock in Apple for $800. While she owned it, she received 20% of the purchase price in dividends. When she sold the stock, at the end of the year, she made a profit of $160. What percent of the cost was the total profit? Use % sign in your answer.