Marty's stock broker sent him a report on a stock currently selling at $25.00. The expected dividend is $2.00 next year, and the twelve month expected price is $ 30.00. The commission for trading stocks is 1.5% of the stock price when bought or when sold. Calculate the expected rate of return after brokerage fees if Marty buys and holds the stock for one year. (Ignore taxes) .
Marty's stock broker sent him a report on a stock currently selling at $25.00. The expected dividend is $2.00 next year, and the twelve month expected price is $ 30.00. The commission for trading stocks is 1.5% of the stock price when bought or when sold. Calculate the expected rate of return after brokerage fees if Marty buys and holds the stock for one year. (Ignore taxes) .
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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Marty's stock broker sent him a report on a stock currently selling at $25.00. The expected dividend is $2.00 next year, and the twelve month expected price is $ 30.00. The commission for trading stocks is 1.5% of the stock price when bought or when sold. Calculate the expected
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