Your client buys 10 shares of stock at time 0 for $43 per share.At time 1, he receives a dividend of $1 per share, and buys another 10 shares at the new priceof $48 per share.At time 2, he receives a dividend of $1 per share, and sells his entire holding of stock for $51per share.What was the client's time-weighted annual return on this position?Enter answer as a percentage, accurate to two decimal places.

To calculate the client's time-weighted annual return, we'll break down the calculation into the…

Answered: Your client buys 10 shares of stock at…

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

You own 300 shares of Finance Inc’s preferred stock which currently sells for $30.00 per share and pays annual dividends of $2.00 per share. i. What is the expected return? ii. If you require a 10% return, given the current price, should you sell or buy more stock
You purchased a stock for $53.4 a share and resold it one year later. Your total return for the year was 10.62 percent and the dividend yield was 6.18 percent. At what price (in $) did you resell the stock? Answer to two decimals.
An investor purchased a stock one year ago for $82.00. It paid an annual cash dividend of $6.21 and is now worth $93.84. What total return did the investor earn? Would the investor have experienced a capital gain? Explain. The investor would experience a capital gain in the amount of $11.8411.84. The total return earned by the investor is $enter your response here. The total percentage return by the investor 22.0722.07%.
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.
Suppose you can buy 983 shares of Vertex Pharmaceuticals Incorporated (VRTX) stock on margin at $167 per share. Your initial margin is 51% and you borrow at the 7 percent. You sell your VRTX shares 6 months later for $185 per share. There were no dividends paid and the prices reflect commissions paid. What is your percent return if you buy on margin? [Enter the answer in as a percent (e.g., 5.55% = 5.55) - not a decimal]
You purchase 110 shares for $40 a share ($4,400), and after a year the price falls to $35. Calculate the percentage return on your investment if you bought the stock on margin and the margin requirement was (ignore commissions, dividends, and interest expense): 15 percent. Use a minus sign to enter the amount as a negative value. Round your answer to one decimal place. % 50 percent. Use a minus sign to enter the amount as a negative value. Round your answer to one decimal place. % 75 percent. Use a minus sign to enter the amount as a negative value. Round your answer to one decimal place. %
In your portfolio, you own Delta Air Lines and Coca Cola Company stock in which you initially purchase ten shares of each stock at $85 and $30 respectively. At the end of a month, DAL is valued at $90 and KO is valued at $28. Assume, they don’t pay a dividend. What is the initial value of the investment? What is the return (expressed as a percent) for Delta at the end of the first month? What is the return (expressed as a percent) for Coke at the end of the first month?
An investor buys shares in a mutual fund for $22. At the end of the year the fund distributes a dividend of $0.57, and after the distribution the net asset value of a share is $24.04. What is the investor's percentage return on the investment? Round your answer to two decimal places.
An investor buys shares in a mutual fund for $20. At the end of the year the fund distributes a dividend of $0.67, and after the distribution the net asset value of a share is $24.57. What is the investor's percentage return on the investment? Round your answer to two decimal places. %
At the beginning of 2007, an investor buys 2 shares at $100 each. At the beginning of 2008, he buys another 3 shares at $120 each. At the beginning of 2009, he sells 1 share at $110 each. At the beginning of 2010, he sells the remaining 4 shares at $130 each. The stock does not pay any dividend. Calculate the dollar-weighted rate of return.
Find the realized return that you would earn if you purchased a stock originally for $43, sold it for $42, and during the year received a dividend of $3.

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