You Invest $3000 by buying 100 shares of Driss Inc at a price of $30 per share. One year from now, Driss pays you a dividend of 60 cents per share. One year later (i.e. two years from now), you get another dividend of 60 cents per share and then you immediately sell your shares for $32 each. What return (IRR) did you get on your investment? (Do not round intermediate calculations. Report your result as a percentage. Round the final answers to 2 decimal places. Be careful - Excel's default is to report whole precentage points. Omit the % sign in your response. For example, if your answer is 3.21%, just enter 3.21)

You Invest $3000 by buying 100 shares of Driss Inc at a price of $30 per share. One year from now, Driss pays you a dividend of 60 cents per share. One year later (i.e. two years from now), you get another dividend of 60 cents per share and then you immediately sell your shares for $32 each. What return (IRR) did you get on your investment? (Do not round intermediate calculations. Report your result as a percentage. Round the final answers to 2 decimal places. Be careful - Excel's default is to report whole precentage points. Omit the % sign in your response. For example, if your answer is 3.21%, just enter 3.21)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

Compute the total and annual returns on the described investment. Six years after buying 100 shares of XYZ stock for $70 per share, you sell the stock for $10,500. The total return is %. (Do not round until the final answer. Then round to one decimal place as needed.) The annual return is %. (Do not round until the final answer. Then round to one decimal place as needed.) Enter your answer in each of the answer boxes.
You Invest $3000 by buying 100 shares of Driss Inc at a price of $30 per share. One year from now, Driss pays you a dividend of 40 cents per share. One year later (i.e. two years from now), you get another dividend of 40 cents per share and you immediately sell your shares for $32 each. What return (IRR) did you get on your investment? (Do not round intermediate calculations. Report your result as a percentage. Round the final answers to 2 decimal places. Be careful - Excel's default is to report whole precentage points. Omit the % sign in your response. For example, if your answer is 3.21%, just enter 3.21)
Compute the total and annual returns on the described investment. Five years after buying 200 shares of XYZ stock for $40 per share, you sell the stock for $11,500. The total return is %. (Do not round until the final answer. Then round to one decimal place as needed.)
You purchase 1,000 shares of WMT (Walmart) for $143 per share. A year later, you sell the stock for $166 per share. You receive a dividend of $2.27 a share. a.What is your total dollar return? b. What are your dividend yield, capital gain yield, and total percentage return? Note: don't use chat gpt.
Suppose you purchase one share of the stock of Red Devil Corporation at the beginning of year 1 for $43.00 At the end of year 1, you receive a dividend of $2, and buy one more share for $47.00. At the end of year 2, you receive total dividends of $4 (e., $2 for each share), and sell the shares for $55.00 each. What is the time-weighted return on your investment? (Round your answer to 2 decimal places. Do not round intermediate calculations.) Return 1%
You buy 100 shares of stock for $50 per share. The stock pays a dividend of $2 per share per year. (Round your answers to the nearest whole number, if necessary) After 1 year, if you sell the shares for $50 per share, what is the percentage return that you earned? After 1 year, if you sell your shares for $60 per share, what is the percentage return that you earned?
A speculator sells a stock short for $71 a share. The company pays a $2.50 annual cash dividend.After a year has passed, the seller covers the short position at $63. If the margin requirement is55 percent, what is the percentage return earned on the investment? Redo the calculations, assuming the price of the stock is $78 when the investor closes theposition. Based on your calculations to both scenarios, what generalization can be inferred?
You buy 100 shares of stock for $50 per share. The stock pays a dividend of $2 per share per year. That dividend is not reinvested. After 5 years, if you sell your shares for $50 per share, what is the total percentage return that you earned? (Round your answer to the nearest whole number, if necessary)
In you cash account, you buy 100 shares of XYZ Corporation at a price of $10 per share. Two months later, XYZ pays a dividend $0.21 per share. You sell all 100 shares of XYZ three months later at a price of $12 per share. What is your total return on this trade in dollar amount?
Suppose you purchase one share of the stock of Red Devil Corporation at the beginning of year 1 for $46.50. At the end of year 1, you receive a dividend of $2, and buy one more share for $50.50. At the end of year 2, you receive total dividends of $4 (i.e., $2 for each share), and sell the shares for $58.50 each. What is the time-weighted return on your investment? (Round your answer to 2 decimal places. Do not round intermediate calculations.)
Compute the total and annual returns on the described investment. Six years after buying 200 shares of XYZ stock for $50 per share, you sell the stock for $15,000. The total return is ? %
You are planning to purchase the stock of Martie Inc. and you expect it to pay a dividend of $3 in 1year, $4.25 in 2 years, and $6.00 in 3 years. You expect to sell the stock for $100 in 3 years. If your required return for purchasing the stock is 12 percent, how much would you pay for the stock today?

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