In: Finance

An investor buys some shares of ABC for $20 at the beginning of the year. During the year he receives $0.50 in dividends, and then sells the shares for $21 at the end of the year. What is the total return on this investment?

Total return on investment=(Selling price + Dividend -Buying price)/ buying price)*100

= ((21+.5-20)/20)*100

= (1.5/20)*100

= 7.5%

Overall return which has been made by investor is 7.5 %.

An investor buys 50 shares of BOA at $22.6 per share at the
beginning of 2017, buys another 80 shares at $29.75 per share at
the beginning of 2018, sells 30 shares at $24.08 per share at the
beginning of 2019, and sells all 100 remaining shares at $35.35 per
share at the beginning of 2020. BOA pays $0.39 per share of
dividends at the end of 2017, pays $0.54 per share of dividends at
the end of 2018, and...

An investor buys three shares of XYZ at the beginning of 2002
for $100 apiece. After one year, the share price has increased to
$110 and he receives a dividend per share of $4. Right after
receiving the dividend, he buys two additional shares at $110.
After another year, the share price has dropped to $90, but the
investor still receives a dividend per share of $4. Right after
receiving the dividend, he sells one share at $90. After another...

1. An investor buys a 20-year semiannual bond with a coupon rate
of 5% for $950. He plans to hold the bond for 8 years and then sell
it. The investor expects to reinvest the first 6 coupon payments at
4.5% and the next 10 payments at 5.5%. He also expects that the
bond’s YTM at the end of the holding period to be 6%. Under these
assumptions, the total interest amount is
A. $420.63 B. $450.85 C. $474.51 D....

An investor buys 1,000 shares of Tundra Enterprises, Inc. at $45
1/2 per share. A year later, he sells his entire position at $53
1/4. The firm paid a dividend of $0.75 per share during this
period. Based on this information, calculate the investor's
realized return

An investor buys 1 share of ABC Ltd at the price of $32 on
December 1, 2019. The firm is not expected to pay any dividends.
Consider the following three possible scenarios for the share price
on December 1, 2020:
$50 with a probability of 30%
$35 with a probability of 60%
$23 with a probability of 10%
b) Calculate the expected return for holding the share for a
year. (2 mark)
c) Calculate the variance of return and standard...

An investor buys 1 share of ABC Ltd at the price of $32 on
December 1, 2019. The firm is not expected to pay any dividends.
Consider the following three possible scenarios for the share price
on December 1, 2020:
$50 with a probability of 30%
$35 with a probability of 60%
$23 with a probability of 10%
b) Calculate the expected return for holding the share for a
year. (2 mark)
c) Calculate the variance of return and standard...

An investor buys 1 share of ABC Ltd at the price of $32 on
December 1, 2019. The firm is not expected to pay any dividends.
Consider the following three possible scenarios for the share price
on December 1, 2020: $50 with a probability of 20% $34 with a
probability of 50% $27 with a probability of 15% $20 with a
probability of 15% a) Calculate the expected return for holding the
share for a year. b) Calculate the variance...

An investor buys 1 share of ABC Ltd at the price of $32 on
December 1, 2019. The firm is not expected to pay any dividends.
Consider the following three possible scenarios for the share price
on December 1, 2020: $50 with a probability of 20% $34 with a
probability of 50% $27 with a probability of 15% $20 with a
probability of 15% a) Calculate the expected return for holding the
share for a year. b) Calculate the variance...

An investor buys 1 share of ABC Ltd at the price of
$32 on December 1, 2019. The firm is not expected to pay any
dividends. Consider the following three possible scenarios for the
share price on December 1, 2020:
$50 with a probability of 20%
$34 with a probability of 50%
$27 with a probability of 15%
$20 with a probability of 15%
a) Calculate the expected return for holding the share for a year.
b) Calculate the variance...

Investor buys 200 shares of stock at $27.25 per share. Investor
sells the stock after one year. 1. What is the dollar amount of
gain and the percent of return if the stock is sold for $32.60 per
share? How much does the yield percentage increase to if the stock
received a per share dividend of $1.15 during the year? 2. What is
the dollar amount of loss and percentage of return if the stock
received a per share dividend...

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