Question

In: Finance

Assume you purchased a share of stock in Verizon communications at the beginning of 2017 for...

Assume you purchased a share of stock in Verizon communications at the beginning of 2017 for

$77.0077.00.

A year later the stock was worth

$78.1578.15 ,

but during 2017 it paid a dividend of

$5.165.16.

Calculate the following:

a. Income.

b. Capital gain (or loss).

c. Total return

(1) In dollars.

(2) As a percentage of the initial investment.

a. The current income received is

$nothing.

(Round to the nearest cent.)b. The capital gain (or loss) is

$nothing.

(Enter a loss as a negative number and round to the nearest cent.)c. (1) The total return in dollars is

$nothing.

(Round to the nearest cent.) (2) The total return as a percentage of the initial investment is

nothing %.

(Enter as a percentage and round to two decimal places.)

Solutions

Expert Solution

jeff jeffy answered 16 hours ago
Next > < Previous

Related Solutions

Assume that you purchased a share of the Company at the beginning of 2018 for $54.58....
Assume that you purchased a share of the Company at the beginning of 2018 for $54.58. One year later the stock was worth $53.53, but during 2018 you received a cash dividend of $2.32 Calculate the following: 1. Income 2. Capital gain (loss) 3. Total return – a. in dollars; b. as a percent
At the beginning of the year, you purchased a share of stock for $45. Over the...
At the beginning of the year, you purchased a share of stock for $45. Over the year the dividends paid on the stock were $2.20 per share. a. Calculate the return if the price of the stock at the end of the year is $40. (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places. (e.g., 32.16)) b. Calculate the return if the price of the stock at the end of the year is...
a) Assume you purchased a share of stock for $80 on January 1, 2008 and sold...
a) Assume you purchased a share of stock for $80 on January 1, 2008 and sold the share of stock for $30 on December 31, 2012. If the stock paid no dividends what your average yearly growth rate? (not -21.8 or -21.75) b) Assume you purchase a stock which grows at 10% the first year, 5% the second year and lost 2% the third year. What is your average annual growth rate? (not 4.33 or 5.67) c) Assume you purchased...
1.) Assume you purchased 100 shares of Zoomer Corp's stock on margin at the beginning of...
1.) Assume you purchased 100 shares of Zoomer Corp's stock on margin at the beginning of the year for $40 per share. You use $2500 of your own funds and borrow $1500 from the broker. Maintenance Margin requirement is 25%. a) At what price would you receive a margin call (ignore interest)? b) Annual interest cost is 4% on the margin account loan. What is your rate of return on your investment if Zoomer's stock is $44.50 per share after...
Marlene Bellamy purchased 400 shares of Writeline Communications stock at $ 56.26 per share using the...
Marlene Bellamy purchased 400 shares of Writeline Communications stock at $ 56.26 per share using the prevailing minimum initial margin requirement of 60 % . She held the stock for exactly 6 months and sold it without any brokerage costs at the end of that period. During the 6 ​-month holding​ period, the stock paid $ 1.63 per share in cash dividends. Marlene was charged 7.2 % annual interest on the margin loan. The minimum maintenance margin was 25 %...
Analyzing and Interpreting Footnote on Operating and Capital Leases Assume Verizon Communications, Inc., provides the following...
Analyzing and Interpreting Footnote on Operating and Capital Leases Assume Verizon Communications, Inc., provides the following footnote relating to its leasing activities in its 10-K report. The aggregate minimum rental commitments under noncancelable leases for the periods shown at December 31, 2010, are as follows: Years (dollars in millions) Capital Leases Operating Leases 2011 $ 83 $ 1,449 2012 71 1,316 2013 67 1,056 2014 63 806 2015 46 527 Thereafter 161 1,937 Total minimum rental commitments 491 $ 7,091...
You purchased 100 shares of IBM common stock on margin at $151 per share. Assume the...
You purchased 100 shares of IBM common stock on margin at $151 per share. Assume the initial margin is 50%, and the maintenance margin is 30%. Below what stock price level would you get a margin call? Assume the stock pays no dividend; ignore interest on margin. Round your answer to the nearest cent (2 decimal places).
You purchased 1000 shares of Dell stock on margin at $70 per share. Assume the initial...
You purchased 1000 shares of Dell stock on margin at $70 per share. Assume the initial margin is 50% and the maintenance margin is 40%. Assume the stock pays no dividends, and ignore interest on the margin loan. a.What is the rate of return on his investment if the price rises to $85 per share? b.What is the margin if Stock price falls to $60 per share, will the investor receive a margin call ? c.How far can the stock...
In using Verizon Communications Inc 2017 to 2019 SEC 10K Annual financial statements reports( Balance sheet,...
In using Verizon Communications Inc 2017 to 2019 SEC 10K Annual financial statements reports( Balance sheet, Income Statement and Cash Flow Statement) describe Verizon's Capital Expenditures and Investment Decisions.
Verizon Communications financial leverage the last 3 years. Debt to Assets Ratio: 2016= 91% 2017= 83%...
Verizon Communications financial leverage the last 3 years. Debt to Assets Ratio: 2016= 91% 2017= 83% 2018=80% Debt to Equity Ratio: 2016=4.68% 2017= 2.64% 2018=1.99% Interest Coverage Ratio: 2016=5.80% 2017=5.35% 2018= 5.06% How is Verizon financing it's assets? Discuss how much risk is associated with the bonds issued by the company? How can this risk be measured? Please Explain.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT