Three years ago you bought 165 shares of Stock ABC, which was then selling at $12.25...

Three years ago you bought 165 shares of Stock ABC, which was then selling at $12.25 per share. Today, you sold it for $11.85 per share. For the first year you held the stock, you received a dividend of $.18 per quarter. During the second year, you received a dividend of $.24 per quarter. Finally, during the last year, you have received a dividend of $.30 per quarter. What is your total dollar return?

Expert Solution

Initial investment = 165 * 12.25 = 2021.25

Total dividend received in three year = 165 (.18 + .24 + .3)

= 165 * .72

= 118.8

Proceed from sale of stock = 165 * 11.85

= 1955.25

Total gain from stock = (1955.25 + 118.8) – 2021.25 = 52.8

jeff jeffy answered 2 years ago

Three years ago you bought 200 shares of stock trading at $40 per share. One year...

Three years ago you bought 200 shares of stock trading at $40 per share. One year after you bought the stock, it paid a dividend of $2 per share, which you then immediately reinvested in additional (fractional) shares of stock (at a price of $45 per share, which was the price immediately after the dividend was paid). There were no other dividends or cash flows, and today the stock sells for $52 per share. What is the annualized time-weighted return...

Mr. Smith bought shares in Bank of Montreal many years ago. He is considering selling them...

Mr. Smith bought shares in Bank of Montreal many years ago. He is considering selling them because they've gone up in value a fair bit. However, they really enjoy the dividend income that they receive from the shares? What is the best way in this situation ?

You bought 1000 shares of ABC stock on margin at the beginning of April 2012 at...

You bought 1000 shares of ABC stock on margin at the beginning of April 2012 at $4.80 per share. You deposited a 50% margin which was higher than the initial margin of 40%. The prime rate of interest was 2.5% and your broker charged 125 basis points above the prime rate on margin loan (assume simple interest rate). The stock paid a cash dividend of $0.12 per share in February and August of 2012. Your broker charged a flat fee...

One year ago, you bought the ABC bond with a maturity of 30 years for $980....

One year ago, you bought the ABC bond with a maturity of 30 years for $980. The bond’s capital gains yield is -0.3% as of today. The bond’s coupon rate is 7.0% with semiannual payment of coupon. What is the YTM for the bond as of today?

Three years ago, you bought a 12% bond that had 7 years to maturity and a...

Three years ago, you bought a 12% bond that had 7 years to maturity and a yield to maturity of 12%. Today (after the sixth interest payment), you sold the bond when it is yielding 13%. What is your annual rate of return for the three year period? All coupon payments are semi-annual, and the par value is $1,000.

You bought a bond five years ago for $935 per bond. The bond is now selling...

You bought a bond five years ago for $935 per bond. The bond is now selling for $980. It also paid $75 in interest per year, which you reinvested in the bond. Calculate the realized rate of return earned on this bond. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) Realized rate of return = ? %

Four years ago, you bought 500 shares of Kayleigh Milk Co. for $20 a share with...

Four years ago, you bought 500 shares of Kayleigh Milk Co. for $20 a share with a margin of 55 percent. Currently, the Kayleigh stock is selling for $45 a share. Assume there are no dividends and ignore commissions. Do not round intermediate calculations. Round your answers to two decimal places. Assuming that you pay cash for the stock, compute the annualized rate of return on this investment if you had paid cash. % Assuming that you used the maximum...

Three years ago, you bought a house. You took out a $350,000.00 mortgage at 4.75% for...

Three years ago, you bought a house. You took out a $350,000.00 mortgage at 4.75% for 30 years. Now that interest rates have fallen (beginning of year 4 of your current mortgage), you are considering refinancing your existing loan with a new 30 year loan. Your new loan must pay off the remaining balance of your old loan plus pay for all of the fees, associated with the new loan. In addition to all of the standard fees, you choose...

You bought a $1000 corporate bond for $910 three years ago. It is paying $25 in...

You bought a $1000 corporate bond for $910 three years ago. It is paying $25 in interest at the end of every 6 months, and it matures in 6 more years. (a) Compute its coupon rate. (b) Compute its current value, assuming the market interest rate for such investments is 4% per year, compounded semiannually.

Three years ago, Adrian purchased 100 shares of stock in X Corp. for $10,000. On December...

Three years ago, Adrian purchased 100 shares of stock in X Corp. for $10,000. On December 30 of year 4, Adrian sells the 100 shares for $6,000. (Leave no answers blank. Enter zero if applicable. Loss amounts should be indicated with a minus sign.) a. Assuming Adrian has no other capital gains or losses, how much of the loss is Adrian able to deduct on her year 4 tax return?

Question