(Related to Checkpoint 7.1) (Calculating rates of return) On December 5, 2007, the common stoc Inc. (GOOG) was trading for $698.51. One year later the shares sold for only $283.99. Google has ne common stock dividend. What rate of return would you have earned on your investment had you purch shares on December 5, 2007? The rate of return you would have earned is%. (Round to two decimal places.)
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- On December 24, 2007, the common stock of Google Inc. was trading for $700.73. one year later the shares sold for only $298.02. Google has never paid a common stock dividend. What rate of return would you have earned on your investment had you purchased the shares on December 24, 2007?(Calculating rates of return) The common stock of Placo Enterprises had a market price of $9.96 on the day you purchased it just one year ago. During the past year the stock had paid a dividend of $0.85 and closed at a price of $11.55. What rate of return did you earn on your investment in Placo's stock? Question content area bottom Part 1 The rate of return you earned on your investment in Placo's stock is enter your response here%. (Round to two decimal places.)1. An investor purchased a stock one year ago for $58.00. It paid an annual cash dividend of $4.38 and is now worth $65.01. What total return did the investor earn? Would the investor have experienced a capital gain? Explain. Review Only Click the icon to see the Worked Solution. The investor would experience (1) in the amount of $ (Choose from the drop-down menu and round to the nearest cent.) The total return earned by the investor is $ (Round to nearest cent.) The total percentage return by the investor %. (Round to two decimal points.) (1) a capital gain a capital loss neither
- 2) You bought 1500 shares of Microsoft one year ago for $120 per share. Microsoft paid a $2 (per-share) dividend last year. The current stock price is $105. a. What rate of return did you earn from your Microsoft investment? b. Ifinflation rate over the last year was 4%, what is your real rate of return? c. Rather than buying 1500 Microsoft shares a year ago, you instead sold them short. What is the rate of return from your Microsoft trade now? Focu MacBook Pro AFelton Publishing recently completed its IPO. The stock was offered at $14.07 per share. On the first day of trading, the stock closed at $19.97 per share. a. What was the initial return on Felton? b. Who benefited from this underpricing? Who lost, and why?(Calculating rates of return) The common stock of Placo Enterprises had a market price of $10.38 on the day you purchased it just one year ago. During the past year the stock had paid a dividend of $0.74 and closed at a price of $11.57. What rate of return did you earn on your investment in Placo's stock? The rate of return you earned on your investment in Placo's stock is%. (Round to two decimal places.)
- On November 7, 2013, Twitter released its initial public offering (IPO) priced at $26 per share. When the day ended, it was priced at $44.90, reportedly making about 1600 people into millionaires in a single day. At the time it was considered a successful IPO. Four years later, Twitteris trading at around $18 per share. Why do you think that occurred? Is Twitter profitable? How can you find out? If it is not profitable, why do investors continue to support it?On November 7, 2013, Twitter released its initial public offering (IPO) priced at $26 per share. When the day ended, it was priced at $44.90, reportedly making about 1600 people into millionaires in a single day. At the time it was considered a successful IPO. Four years later, Twitter is trading at around $18 per share. Why do you think that occurred? Is Twitter profitable? How can you find out? If it is not profitable, why do investors continue to support it?Suppose you buy Google stock at $ 600 and sell it at $ 720. While you held the stock, Google distributed the dividends worth $6. What is your rate of return on Google stock? Show steps.
- The Nasdaq 100 Trust (QQQQ) opened 2005 at $40 per share and closed 2005 at $41.50 per share. It paid a dividend of $0.14 for the year. Jazy sold 1000 shares short at the beginning of 2005 and closed her position at the close of 2005. Her broker required a 60% margin deposit. Ignoring the dividend, theoretically what was the maximum dollar amount Jazy might have lost?On August 19, 2004, Google completed its IPO of 18.5 million shares to the initial investors at $80 per share. The closing price of the stock that same day was $100.00. What was the dollar value of the underpricing associated with the Google IPO? (Round answer to 0 decimal places, e.g. 5,275.)Publishing recently completed its IPO. The stock was offered at $14.76 per share. On the first day of trading, the stock closed at $18.33 per share. a. What was the initial return on Felton? b. Who benefited from this underpricing? Who lost, and why?