The periodic money weighted rate of return on the investment is closest to:

Q: You bought a Tweet Plc. share for $34.50 at the beginning of the year. During the year, the share…

A: Purchase price = $ 34.50 Dividend = $ 1.50 Year end price = $ 37.50

Q: The dividend on Simple Motors common stock will be OMR3 in 1 year, OMR4.25 in 2 years, and OMR6.00…

A: Given Dividend for  year 1    -  OMR 3 (D1) Dividend for  year 2  -  OMR 4.25 (D2) Dividend for…

Q: Assume that an investor buys 250 shares of stock at $33.78 per share, putting up a 45% mar a. What…

A: A margin account refers to a brokerage account where securities are bought by paying only a portion…

Q: An investor buys shares in a mutual fund for $20. At the end of the year the fund distributes a…

A: Introduction Mutual Funds:  A mutual fund is a type of financial vehicle that invests in securities…

Q: An investor requires a return of 12 percent. A stock sells for $18, it pays a dividend of $1, and…

A: Gordon's growth model is one of the most commonly used variations of the dividend discount model.…

Q: hat is the rate of return if you purchase a stock today for $35 and sell it in five years for $43?…

A: Rate of return is the profit earned on the investment and it is the sum of dividend yield and…

Q: A stock sells for $40 per share and pays a one-time dividend for the full year of $.75. One year…

A: Holding period is defined as the total amount that a person earns for keeping an assets for a period…

Q: share of stock with a beta of 0.75 now sells for $50. Investors expect the stock to pay a year-end…

A: Stock Beta=0.75T-bill Rate=4%Risk Premium=7%Dividend=2Selling Price at the end of the…

Q: Suppose the call money rate is 4.5 percent, and you pay a spread of 2.5 percent over that. You buy…

A: Rate of return refers to the minimum return that is being earned by an investor over an investment…

Q: Suppose you bought a stock for $22.7 per share and then sold it for $14.7 per share. In the mean…

A: Given: Purchase price = $22.7 Selling price = $14.7 Dividend = $1

Q: You deposited P100,000 cash in brokerage account and short sell P200,000 of stocks on margin. Later…

A: It is the difference between the total value of securities held in an investor's account and the…

Q: You purchase 100 shares of stock for $50 a share. The stock pays a $3 per share dividend at…

A: Holding period return includes capital gain and dividend amount received form the share in its…

Q: You have the following share price of XYZ.   DATE Price 2-Mar-2021 $100 3-Mar-2021 $60…

A: Geometric average rate of return will be calculated considering return in each period. Following is…

Q: You purchase 100 shares of stock for $42 a share. The stock pays a $2.5 per share dividend at…

A: Purchase price of stock=$42Dividend=$2.5Ending stock price=$45Inflation rate=4%

Q: You are thinking of purchasing a cumulative, convertible preferred share with a stated dividend of…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: A stock is selling today for $50 per share. At the end of the year, it pays a dividend of $3 per…

A: Part a: We can determine the values by using the steps below:

Q: You purchase 100 shares of stock for $50 a share. The stock pays a $4 per share dividend at…

A: Rate of return on investment Rate of return on investment is calculated as shown below. Rate of…

Q: The risk-free rate is 2.97% and the market risk premium is 9.23%. A stock with a ẞ of 1.79 just paid…

A: Solution:Gordon Growth Model (GGM) is the equity model which measures current price of share.For the…

Q: You buy a share of The Ludwig Corporation stock for $19.80. You expect it to pay dividends of $1.02,…

A: Given information: Price of stock is $19.80 Dividend payment in year 1 is $1.02, year 2 is $1.0863…

Q: Suppose a stock pays 2.5 OMR annual dividends and the rate of return required by investors is 10…

A: Please refer to the image below.

Q: A share of preferred stock pays a quarterly dividend of $2.1. If the price of this preferred stock…

A: Quarterly dividend = $2.1Current price of stock =$96Annual Rate of return=??Meaning of preferred…

Q: ​Pioneer's preferred stock is selling for ​$44 in the market and pays a ​$3.10 annual dividend.   a.…

A: Selling price of the stock = $44 Annual dividend (D) = $3.10   a.  Required yield (r) = 0.08 Fair…

Q: You purchased a stock at a price of $24.  A year later the stock is worth $29, and during the year…

A: The calculation is:

Q: You purchased 100 shares of common stock on margin at $55 per share. Assume that the nitial margin…

A: Share trading in stock market is done on the basis of margins. Initial margin is amount of money…

Q: An investor buys shares in a mutual fund for $21. At the end of the year the fund distributes a…

A: The return on investment would be considered the value from the investment made by investors. The…

Q: You have the following share price of XYZ.   DATE Price 2-Mar-2021 $100 3-Mar-2021 $60…

A: The dollar weighted rate of return is calculated on the basis of the value of the investment at the…

Q: Suppose a share of preferred stock sells for $50.25 and pays a dividend of $9.26 each period. What…

A: Dividend per period = $9.26Current price of preferred stock = $50.25

Q: stock is expected to pay a dividend of $4 in two years and a $5.3 in three years.  You are hoping…

A: The stock's value also known as market capitalization can be computed by multiplying the share price…

Q: estimate that the stock has a required rate of 18%. What is the intrinsic value of this stock?

A: The constant growth model is a stock valuation method used in finance to determine a stock's…

Q: An investor with a required return of 14 percent for very risky investments in common stock has…

A: Given: Particulars A B C Current earnings $1.70 $3.50 $7.20 Current dividend $0.90 $2.10…

Q: A stock sells for a price of $60. Next year's dividend will be $3 per share. If the ROE ("project…

A: Current stock price (P0) = $60Next year expected dividend (D1) = $3Project Return (ROE) = 10% or…

Q: nase 100 snares of stock Tor $25 a snare. The stoCK pays a $1 per share dividend at year-end. a.…

A: As posted multiple independent questions we are answering only first question kindly repost the…

Q: If an investor buys shares in a no-load mutual fund for $33 and after eight years the shares…

A: Mutual funds refer to one type of financial vehicle that pools money from many investors and invests…

Q: Suppose you purchase one share of the stock of Red Devil Corporation at the beginning of year 1 for…

A: return t1 = (ending value - beginning value + dividend )/ beginning value  = (50.50-46.50+2) / 46.50…

Q: You buy a share of The Ludwig Corporation stock for $20.20. You expect it to pay dividends of $1.03,…

A: Growth Rate under dividend policy is that on which dividend is growing with same percentage with…

Q: A stock costs $80 and pays a $2 annual dividend. If you expect to sell the stock after four years…

A: The required return on the stock represents the total return earned on the stock. This return is…

Q: A stock will pay a dividend of $3.5 and is expected to sell for $87.8 in one year.  If the current…

A: A stock's return is the change in its price over a period of time, plus any dividends or other…

Q: If an investor buys shares in a no-load mutual fund for $30 and after five years the shares…

A: The question is based on the concept of Security valuation

Q: chase 100 shares of stock for $40 a share. The stock pays a $4 per share dividend at year-end.…

A: Rate of return can be calculated from the difference between the beginning price and ending price…

Q: B. Investor A spent P 250,000.00 for 250 shares on July 2015. He received a per share dividend…

A: We need to compute dividend yield, capital gains and return on the investment.

Q: Assume you buy 200 shares of stock at $70 per share on margin (40 percent). a. If the price rises to…

A: A margin account refers to an account used for purchasing securities where the investor has to pay…

Q: You have the following share price of XYZ.   DATE Price 2-Mar-2021 $100 3-Mar-2021 $60…

A: Purchase Value = No. of shares * Share price  Purchase Value = 100 shares * $100 = $10000