Compute the total and annual returns on the described investment. Six years after buying 200 shares of XYZ stock for $40 per share, you sell the stock for $12,100. The total return is%. (Do not round until the final answer. Then round to one decimal place as needed.) The annual return is %. (Do not round until the final answer. Then round to one decimal place as needed.)

Compute the total and annual returns on the described investment. Six years after buying 200 shares of XYZ stock for $40 per share, you sell the stock for $12,100. The total return is%. (Do not round until the final answer. Then round to one decimal place as needed.) The annual return is %. (Do not round until the final answer. Then round to one decimal place as needed.)

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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b) Your broker has advised you to buy shares of Fast repair computer repair shop, which has paid a dividend of $2 per share annually and will (according to the broker) continue to do so for many years. The stock is currently priced at $18. You have good reason to think that the appropriate rate of return for this stock is 13% per year. Is the stock's present price a good approximation for the true financial value? What would you like to pay for the share and should you buy or sell now?
Suppose you are thinking of purchasing the Moore Co.’s common stock today. If you expect Moore to pay $2.5, $2.625, $2.73, and $2.81 dividends at the end of year one, two, three, and four respectively and you believe that you can sell the stock for $40.97 at the end of year four. If you required return on this investment is 9%, how much will you be willing to pay for the stock today?
Given the following parameters what is the APR of the following investment? Assume end of month investments. Enter your answer as a percent without the %; round your final answer to two decimals. Investment: Frequency of investment: 104.00 APR Monthly Term: Payoff at the end of the term: $66,245.00 20 Years
You purchased an FRN with a maturity of 7 years, pays USD SOFR annually, and has a face value of USD 6m. At the time SORF was equal to 1.39%. Three years later you check the news and you see that SORF is 4%. What is the value of your investment? (please type in your answer rounded to the nearest dollar: e.g. 4,500,009.02 should be entered as 4,500,009)
You consider buying a share of stock at a price of $950. The stock is expected to pay a dividend of $10 next year, and your advisory service tells you that you can expect to sell the stock in 1 year only for $945. What is the expected rate of return?
Calculate your total return from this investment. You bought a stock for $105. You received $7 annual dividend on the stock. After holding the investment for 2 years the stock currently sells for $74.
You are planning to save for retirement over the next 25 years. To do this, you will invest $1,200 a month in a stock account and $900 a month in a bond account. The return of the stock account is expected to be 7 percent, and the bond account will pay 4 percent. When you retire, you will combine your money into an account with a return of 5 percent. How much can you withdraw each month from your account assuming a 20-year withdrawal period? Multiple Choice $621,766.96 $9,279.68 $9.469.06 $9,658.44 $113,628.75
Marty Neilson has just invested $130,000 in a restaurant that will provide him with an annual income of $18900. He expects to hold the investment for 8 years. What is the accounting rate of return (as a percentage)? ROUND YOUR ANSWER TO 2 DECIMAL PLACES. DO NOT INCLUDE THE % SIGN IN YOUR ANSWER.
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1) Assume you start an investment account by purchasing international corporate stocks with $1,000 now, $1,500 at the end of year 3, and $500 at the end of each year in years 4 through 10. How much money would you have in the account immediately after the last deposit in year 10 if the interest rate is 6% per year? Solve using (a) Tabulated factors, and (b) Spreadsheet.
You plan to buy common stock and hold it for one year. You expect to receive both ₱150 and ₱260 from the sale of the stock at the end of the year. How much will you pay for the stock, if you want to a. Have a return of 8% b. A return of 10% c. A return of 15%

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