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- 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.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= %.
- Joel purchased 100 shares of stock for $31 per share. During the year, he received dividend checks amounting to $289. Joel recently sold the stock for $50 per share. What is the dollar amount of Joel's return?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?Jerry invested $5,400 in a small business venture and received $9,200 twenty years later. What is the rate of return on the investment? O 2.46% 2.48% 2.70% O 2.51%
- Anna has the following income for the quarter: a. Professional income P80,000 b. Income from her business P30,000 c. Compensation income P40,000 d. Interest income from bank deposit P10,000. 1. What amount of income will Anna report in her quarterly income tax return? a. P80,000 b. P110,000 c. P120,000 d. P150,000 2. If Anna, opted to use 8% rate, how much is her income tax due in her quarterly ITR? a. P6,400 b. P8,800 c. P9,600 d. P12,000Brooke invested $4,500 in the stock market with the expectation of earning 6.25 percent.She actually earned 7.15 percent for the year.What is the amount of her unexpected return?Sarah and James Hernandez purchased 320 shares of Macy’s stock at $15 a share. One year later, they sold the stock for $35.00 a share. They paid a broker a commission of $7 when they purchased the stock and a commission of $11 when they sold the stock. During the 12-month period the couple owned the stock, Macy’s paid dividends that totaled $2.05 a share. Calculate the Hernandezes’ total return for this investment. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
- Tammy Jackson purchased 141 shares of All-American Manufacturing Company stock at $40.50 a share. One year later, she sold the stock for $44 a share. She paid her broker a $36 commission when she purchased the stock and a $42 commission when she sold it. During the 12 months she owned the stock, she received $167 in dividends. Calculate Tammy’s total return on this investment.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?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 $25,000 for 1,200 shares of Malti Company’s common stock. She received a $1,032 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 $24,000. 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 provided a 13% return and would like some help with the necessary computations. Click here to view Exhibit 13B-1 and Exhibit 13B-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?