2:25 1LTEWhat is the rate of return when 25 shares of StockA, purchased for $30/share, are sold for $825? Thecommission on the sale is $6.SkipRate of Return = [ ? ] %Give your answer as a percent rounded to thenearest tenth.EnterDoneW e ryuорaSdfg hjkCVn m123spacereturnHelp Resources

Rate of return is the amount which defined total income or loss earned over a specific period of…

Answered: What is the rate of return when 25…

What is the rate of return when 25 shares of Stock A, purchased for $30/share, are sold for $825? The commission on the sale is $6. Rate of Return = [ ? ] %

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: If flotation cost is 1%, what is the cost of preferred stock that sells for $81 per share and has a…

A: The cost of the preferred stock refers to the amount the pays in return for the gains it received by…

Q: 8. Dividend discount model Company X is expected to pay an end-of-year dividend of $5 a share. After…

A: End of year stock price (P1) = $110Expected end of year Dividend (D1) = $5Market Capitalization rate…

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: Next year's dividend is expected to be $2.14, g = 7%, and k = 12%. What is the stock's intrinsic…

A: Intrinsic Value = D1 /(ke-g) Where, D1 = Expected dividend

Q: ny equity capital must the investor provide to make this margin t

A: Equity capital refers to raising funds by liquidating the share of the company. Companies often…

Q: A share of preferred stock pays a dividend of $0.33 annually. The required rate of return is 3%.…

A: Preferred stock is those shares that get the dividend before paying any dividend to common…

Q: What rate of return should you expect to earn on an investment in the stock described below if you…

A: Equity financing is the most used financing by the companies because the risk of repayment is less.…

Q: Brief Exercise 4-06 a1-a2 The income statement for Salt Creek Golf Club for the month ending July 31…

A: Journal entries are prepared to record the financial and non financial transactions of the business.

Q: An investor short sells 100 shares of a stock for $68.18 per share. The initial margin is 57%, and…

A: ParticularsValuesNumber of share100Stock price per share$68.18Initial margin57%Current stock…

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 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 purchase 1,000 shares of WMT (Walmart) for $143 per share. A year later, you sell the stock for…

A: ParticularsValuesNumber of shares purchased1000Purchase Price per share$143Selling price per…

Q: You buy a share for $15.21 and sell it exactly one year later for $17.38. Your total return on the…

A: We need to use total return on investment formula below to calculate dividend

Q: b. Construct the balance sheet that corresponds to the transaction described in requirement a.…

A: Initial margin is the margin which is given initially, It is the percent of the purchase price that…

Q: purchase You pur snares of Company mmon stock on margin at $30 per share. Assu e initial margin is…

A: There are various sources that are used by the company in order to raise the finance, One of them 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: What is the return if a share is bought for £8, a dividend is paid of 80p, and the share is sold for…

A: Rate of return is amount of percnetage profit achieved over the initial amount of investment and it…

Q: Earnings per Share = 2. Average Ordinary Shares Outstanding = 100. How much is price earning ratio?

A: Price Earning Ratio -: Price Earning Ratios are utilized by investing agencies and analysts to…

Q: An investor short sells 100 shares of a stock for 69.07 per share. The initial margin is 50%, and…

A: A demand for additional funds or securities to be deposited into an investor's or trader's margin…

Q: How much will be the net amount to be received in selling 950 shares of a stock with a market value…

A: The amount received by selling shares is calculated by multiplying the number of shares sold to…

Q: An investor short sells 100 shares of a stock for $68.59 per share. The initial margin is 58%, and…

A: Margin refers to the amount of money that is borrowed to finance the underlying transaction, It is…

Q: Meralco has earnings per share of P10. It is expected that the company’s stock should sell at 3…

A: Market price of share can be calculated by earnings per share multiply with number of time selling…

Q: Assume you purchased 2000 shares of XYZ common stock on margin at $ 30 per share from your broker .…

A: Interest amount will be computed by finding the leverage amount taken from the broker.

Q: If a company has a current stock price of $45, an EPS of $3/share; EPS growth rate of 10% and the…

A: Cash price refers to the amount of cash i.e. received or paid while purchasing or selling the goods…

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: Calculate the dividend yield on OPQ stock. Earnings per share (EPS) are $2.75, and the quarterly…

A: Dividend Yield: A financial ratio represents how much income is earned in dividend payouts each…

Q: A preferred share of stock pays dividends of $80 per year, and the required rate of return for the…

A: Value of preference shares = Dividend / Required rate

Q: A stock is bought for $21.00 and sold for $26.00 one year later, immediately after it has paid a…

A: Introduction Capital Gain Transaction: It can be coined as an appreciation of the value of the…

Q: You purchased a stock at a price of $56.04. The stock paid a dividend of $2.31 per share and the…

A: Capital gains yield = [(P1 - P0) / P0] x 100whereP1 = Stock price at the end of the year =$62.59P0 =…

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

Q: Assume that an investor buys 100 shares of stock at $37 per share, putting up a 65% margin. a. What…

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

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

A: When the time-weighted return is to be computed then it means that the investor is interested to…

Q: Share commom stock dividend is $1.00 , g=5.4 and required return is 11.4%, What is the stock price?

A: Current Divided (D0) = 1 Growth rate(g) =5.40% Required return (k)=11.40% Current stock price =…

Q: An ordinary share selling at a current market price of RO 15 and paying a current dividend of RO…

A: Given: Current market price =RO 15Current dividend =RO 0.10Expected growth rate =6%

Q: In a dealer's market, the bid and ask price of a stock is $31.06 and $31.33, respectively. You sell…

A: Transaction costs are costs brought about when buying or offering budgetary resources, such as…

Q: A share has just paid a dividend of OMR2.00. The dividend is expected to grow constantly at 20% and…

A: Shares are the units of stocks of a company and depict an equity ownership interest in the company.…

Q: Calculating Return Components An investor purchases one share of stock for $50. After one year,…

A: Dividend yield refers to the percentage of the annual dividend paid by a company relative to its…

Q: u short sell 1,000 shares of RAJ stock at a price of $70. Your initial margin is 50%. If you cover…

A: The short sale is a process in which the trader has entered into a contract and sells the share…

Q: You buy a share on 1 January for $35.18 and sell it on 31 December for $41.38. During the year you…

A: The term shares refer to the equity shares that are issued by the companies to raise capital from…

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

A: The dividend yield is the percentage ratio that tells us about how much dividend a company is paying…

Q: 2. The market value of the stocks of Sun Corporation at the beginning of year 1 is P150 per share;…

A: Holding period return is the return earned by the investor for the period.

Question

2:25 1
LTE
What is the rate of return when 25 shares of Stock
A, purchased for $30/share, are sold for $825? The
commission on the sale is $6.
Skip
Rate of Return = [ ? ] %
Give your answer as a percent rounded to the
nearest tenth.
Enter
Done
W e r
y
u
ор
a
S
d
f
g h
j
k
C
V
n m
123
space
return
Help Resources

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

am. 131.
A preferred stock pays a 3% dividend yield on a redemption value of $40, what is its value using a cost of equity of 2.5%? What is the value if the cost of equity goes up 100 basis points? 9.
What is the current price of a share of stock when last year’s dividend was P3, the growth rate is 5%, and the investor’s required rate of return is 12%? Format: 11
A stock originally sold for K25 per share and ten years later, now sells for K40.The dividend last paid was K10. Find the Dividend yield and capital gains yield and total yield or return?
What is the price of a stock with an annual dividend of $30, required return on equity of 10%, and expected dividend growth rate of 7%? Select one: a. $1070 b. $960 , O c. $1015 d. $1135
If a security offers a dividend amounting to P 5.23/ share and an investor purchased 200 shares at P 77.50/share, what is his Total Investment Return at the end of the year if the share price increased by 8%? Based on the given above, compute for the Dividend Yield Rate, Capital Gains Rate, and Total Investment Return Rate.
am. 104.
The Beautiful Flower Company. has earnings of $1.44 per sharee. a. If the benchmark PE for the company is 13, how much will you pay for the stock? b. If the benchmark PE for the company is 16, how much will you pay for the stock?
1. A share has just paid a dividend of OMR2.00. The dividend is expected to grow constantly at 20% and the required return on similar shares is 8%. What price is the share? A. OMR20.00 B. Approximately OMR16.67 C. OMR18.00 D. It cannot be calculated
Pls use formula to calculate r = (FV/PV)(1/t) - 1 (b)Shares in Plc currently sell for Rs 4200 and will be worth Rs 4,975 in 7.5 years. Calculate the rate of return
You buy a share on 1 January for $35.13 and sell it on 31 December for $39.68. During the year the share pays dividends of $1.16 on 1 April, $2.42 on 1 July and $2.17 on 1 October. What is your realised return? a. 3.0242% b. 29.3197% c. 3.4159% d. 25.9577%
A stock sells at $15 per share. a. What is the EPS for the company if it has a P/E ratio of 20? Round your answer to the nearest cent. $ b. If the company's dividend yield is 4 percent, what is its dividend per share? Round your answer to the nearest cent. $ c. What is the book value of the company if the price-to-book ratio is 1.5 and it has 400,000 shares of stock outstanding? Round your answer to the nearest dollar. $