You invest $7,873 in stock and receive $102, $123, $121, and $155 in dividends over the following 4 years. At the end of the 4 years, you sell the stock for $11,900. What was the IRR on this investment? Review Only Click the icon to see the Worked Solution (Calculator Use). Click the icon to see the Worked Solution (Spreadsheet Use). The IRR on this investment is %. (Round to the nearest whole percent.)

You invest $7,873 in stock and receive $102, $123, $121, and $155 in dividends over the following 4 years. At the end of the 4 years, you sell the stock for $11,900. What was the IRR on this investment? Review Only Click the icon to see the Worked Solution (Calculator Use). Click the icon to see the Worked Solution (Spreadsheet Use). The IRR on this investment is %. (Round to the nearest whole percent.)

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter15: Investments And Fair Value Accounting

Section: Chapter Questions

Problem 2CP

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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
1) Assume you start an investment account by purchasing international corporate stocks with $1,000 now, $1,500 at the end of year 3, and $500 at the end of each year in years 4 through 10. How much money would you have in the account immediately after the last deposit in year 10 if the interest rate is 6% per year? Solve using (a) Tabulated factors, and (b) Spreadsheet.
1. Stock WatcherMark Martin has created a basic stock watcher worksheet that he uses to report on gains or losses from when he purchased the stock and the last recorded date and price. Mark has given you a snapshot of his spreadsheet (see Figure T2.20) that you can use to re-create this spreadsheet for yourself. Here are some basic steps to follow:1. Create a new workbook.2 . Enter all the information provided in Figure T2.20 . 3. Apply the Currency format to the respective columns.4. The date should be entered as a function. Hint: Use the NOW function.5. Enter a formula for the Gain/Loss (%) column. Hint: You should subtract the Last columnfrom the Purchase column, and then divide by the Purchase column.6 . Format for percent in the Gain/Loss (%) column.
The following table contains prices and dividends for a stock. All prices are after the dividend has been paid. If you bought the stock on January 1 and sold it on December 31, what is your realized return? Hint: Make sure to round all intermediate calculations to at least five decimal places. (Click on the following icon in order to copy its contents into a spreadsheet.) Jan 1 Mar 31 Jun 30 Sep 30 Dec 31 Price 10.09 11.09 10.59 11.19 11.09 Dividend 0.16 0.16 0.16 0.16 Your realized return is%. (Round to one decimal place.)
Suppose you purchase one share of the stock of Cereal Correlation Company at the beginning of year 1 for $35. At the end of year 1, you receive a $3 dividend, and buy one more share for $44. At the end of year 2, you receive total dividends of $6 (i.e., $3 for each share), and sell the shares for $50 each. The time-weighted return on your investment is? When performing the calculations, do not round any inputs or interim results until you get the final answer. Round your final answer to four places after the decimal point. The dollar-weighted return on your investment is? When performing the calculations, do not round any inputs or interim results until you get the final answer. Round your final answer to four places after the decimal point.
Refer to Figure 2.8 and look at the listing for Hewlett Packard. Required: a. How many shares can you buy for $25,000? Note: Round down your answer to the nearest whole number. b. What would be your annual dividend income from those shares? Note: Round down your intermediate calculations to the nearest whole number. Do not leave the cell blank. Enter zero (0) if required. Round your answer to 2 decimal places. c. What must be Hewlett Packard's earnings per share? Note: Round your answer to 2 decimal places. d. What was the firm's closing price on the day before the listing? Note: Round your answer to 2 decimal places. a. Number of shares b. Annual dividend income c. Earnings per share d. Yesterday's closing price NAME Herbalife Nutrition SYMBOL CLOSE HLF Hershey HSY Hess Corporation HES Hewlett Packard HPE HD HMC HON Home Depot Honda Honneywell CHANGE 0051.45 -0.05 1.64 -3.52 0.25 2.17 0.13 3.69 177.57 80.39 14.01 319.22 32.54 227.22 VOLUME 0000434,355 658,253 2,143,509 9,448,992…
Stock returns and your retirement account: Suppose your retirement accounthas a balance today of $25,000 and you are 20 years old. If you are investedin a diversifed portfolio of stocks, you might hope that the historical returnof about 6% continues into the future. Consider how the balance in yourretirement account evolves as you age under the diferent assumptions below.(If you like, use a spreadsheet program to help you with this question.)(a) Compute the balance in your retirement account when you will be 25,30, 40, 50, and 65 years old assuming the average annual rate of return is6%. Assume there are no deposits or withdrawals in this account, so theoriginal balance just accumulates.(b) Do the same thing for rate of return of 5% and 7%. How sensitive is thecalculation to the rate of return?(c) Plot your retirement account balance for these three scenarios (6%, 5%,7%) on a standard scale.(d) Do the same thing with a ratio scale.
You are considering buying stock of a particular company. Your plan is to buy the stock today, receive dividend payments exactly one year from now, receive dividend payments again exactly two years from now, and immediately after receiving dividends in the second year, you would sell the stock. You paid a professional to perform fundamental analysis on the company, and you receive the following information based on that analysis: 1. expected dividend payment for one share one year from now: $21 2. expected dividend payment for one share two years from now: $34 3. expected sale price of one share of stock two years from now: $340 You may assume there is no inflation. If the prevailing interest rate is 7%, at what price would you consider a share of this company to be fairly valued today? (If necessary, round your answer to the nearest integer)
Michelle Walker is interested in buying the stock of Sandhill, Inc., which is increasing its dividends at a constant rate of 7.7 percent. Last year the firm paid a dividend of $2.65. The required rate of return is 13.00 percent. Excel Template (Note: This template includes the problem statement as it appears in your textbook. The problem assigned to you here may have different values. When using this template, copy the problem statement from this screen for easy reference to the values you've been given here, and be sure to update any values that may have been pre-entered in the template based on the textbook version of the problem.) (a1) X Your answer is incorrect. What is the current value of this stock? (Round answer to 2 decimal places, e.g. 15.20.)
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.
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.
Assume you purchase a share of stock for $50 at time t=0, and another share at $65 at time t= 1, and at the end of year 1 and year 2, the stock paid a $2.00 dividend. Also, at the end of year 2 you sold both shares for $70 each. What is the time-weighted rate of return? Give typing answer with explanation and conclusion