You buy a share of stock today for $ 396 and receive quarterly dividends of $2.30 at the end of each quarter for the next 2 years, and sell the stock for $ 405 at the end of two years. What is the annual return on your investment? 4 Round your final answer as a percentage to one decimal place (e.g. 15.8%) A

Q: You buy 100 shares of stock for $50 per share. The stock pays a dividend of $2 per share per year.…

A: Data given: Purchase price (P0)= $50 per share Dividend per share per year = $2 i.e., D1=$2,  D2= $2…

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

A: Percentage return = ( Current price - Purchase price ) / Purchase price

Q: Suppose you invest $50 each month into a mutual fund. You reinvest distributions. At the end of 5…

A: If you have any questions let me know in comment box thankyou for your question.

Q: You invest in a stock for four years. The returns for the four years are 20%, -10%, 15%, and -5%.…

A: Arithmetic Average return refers to the return on an investment which takes into consideration the…

Q: The current price of a stock is $80.24. If dividends are expected to be $1.00 per share for the next…

A: The price of stock refers to the price at which the securities can be bought or sold in the stock…

Q: You plan to invest in securities that pay 8.6%, compounded annually. If you invest $5,000 today, how…

A: The objective of this question is to find out how many years it will take for an investment of…

Q: What is most we should pay for a share of preferred stock that pays an annual dividend of $1.8 per…

A: In case of perpetual stock we should pay for a share of preferred stock that pays an annual dividend…

Q: You buy a stock for $125, receive a dividend of $12 and sell the stock for $95 one year…

A: Dollar return =Closing price - Opening price + Dividend Dollar return = $95 - $125 + $12 Dollar…

Q: Suppose you purchase 500 shares of Blue Acre, which currently trading at $60 per share. Suppose that…

A: Margin trading involves borrowing funds from a broker to purchase securities, such as stocks, bonds,…

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: What is the value today of a stock that will pay me $1 in dividends each of the next 5 years and…

A: A stock is a part of equity capital issued by a corporation for raising equity funds from the…

Q: If you purchase a stock today for $100 and plan to sell in 7 years at an average return of 7.6% what…

A: The objective of the question is to calculate the future value of an investment. In this case, we…

Q: On January 1, 2016, Charley Dow bought 1,000 shares of stock at $12 per share. On December 31, 2018,…

A: The rate of return refers to the profits that the investment provides to the investor. It is used to…

Q: On January 1, 2016, Charley Dow bought 1,000 shares of stock at $21 per share. On December 31, 2018,…

A: Present Value = $21Holding period = 2 yearsFuture value after 2 years = $27

Q: Kristina pays $5,000 for shares in a new company. She sells the shares 10 years later for $22,500.…

A: Given Sale amount is $22,500. Purchase amount is $5,000.

Q: A common stock will pay a cash dividend of $4.25 next year. After that, the dividends are expected…

A: Cash dividend = $4.25Dividends are expected to increase indefinitely at 4% per year.Discount rate =…

Q: You find a mutual fund that offers approximately 6% APR compounded monthly. You will invest enough…

A: Annuity means finite no. of payments which are same in size and made in equal intervals. A person…

Q: The Uptowner will pay an annual dividend of $1.98 a share next year with future dividends increasing…

A: The Gordon model is a model that helps to compute the fair price of the stock with the help of…

Q: You expect to receive $6433 at graduation in five years. You plan on investing it at 6.87% until you…

A: The concept of TVM refers to the interest-earning capacity of money because money earned earlier is…

Q: You purchase a stock for $1000 and expect to sell it for $900 after five years but also expect to…

A: The rate of return that an investor is earning from a particular investment in a particular time…

Q: hat are the holding period and the annualized compounded returns if you buy a stock for $35 and sell…

A: Holding period return is the total percentage return on an investment over a period of investment.…

Q: You plan to invest in securities that pay 8.6%, compounded annually. If you invest $5,000 today, how…

A: The objective of the question is to find out how many years it will take for an investment of $5,000…

Q: Assume you plan to retire in 34 years.  If you invest $280.00 per month in the broad U.S. equity…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: share of stock will pay a dividend of $25 in one year, and will be sold fon rice of $500 at that…

A: Share price: Share price is the current market price of the share. It is the price of the share at…

Q: Assume you invest $1 000 at the end of this year, at the end of the second year, and at the end of…

A: Annual deposit for 3 years = $ 1000 Annual interest rate = 5% Future value period = 4 Years

Q: You are planning your retirement in 10 years. You currently have $173,000 in a bond account and…

A: Retirement refers to the period in a person's life when they choose to stop working and typically…

Q: .You suppose to invest a stock that receives both $1.5 in dividends and $25 from the sale of the…

A:

Q: A man purchased a share or stock for P135 six years ago and has received a dividend of P6 at the end…

A: The rate of return is the return an investors receive on his or her capital during a period of time.…

Q: You own a stock trading on 1/1 at 40 and on 12/31 at 43.50. What annual dividend do you need to earn…

A: Beginning stock price (P0) = 40 Ending stock price (P1) = 43.50 Let the annual dividend = D Required…

Q: You can purchase stock from XYZ Corp at a price of $50/share.  You purchase 100 shares today, and…

A: Here, To Find: Value of shares after 5 years =?

Q: What are the holding period and the annualized compounded returns if you buy a stock for $35 and…

A: Holding period returns = [ Sale Value - Purchase Value ] / Purchase Value * 100 Annualized…

Q: The Berry Corporation stock  price changes from $99  at the beginning of 2022 to $72 at the end of…

A: Dividend = $3 Price at the beginning = $99 Price at the end = $72

Q: If the next year's dividend was $2 per share and all future dividends will increase by 5%…

A: According to Gordon's growth model,Po =wherePo= price of stockD1 =dividend to be paidr= required…

Q: You plan to buy common stock and hold it for one year. You expect to receive both ₱150 and ₱260 from…

A: As per the arbitrage free pricing theory the price that should be paid = intrinsic value of the…

Q: Compute the total and annual returns on the described investment.   Six years after buying 200…

A: Given, Number of shares bought 200 Price per share is $50 Sale value $15000

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: You invest $10,000 in a stock and hold the stock for 3 years. Over the 3 year period, your…

A: value of the stock = investment*(1+gm)^3

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…