An investor bought 500 shares of PanSac International when it was selling for $80 a share...

An investor bought 500 shares of PanSac International when it was selling for $80 a share and sold the shares one year later for $95.48. PanSac paid $3 per share in dividends. Calculate the investor’s actual rate of return.

Expert Solution

Rate of return = (Sale price - purchase price +dividends)/purchase price

= (95.48 -80 + 3)/80 = 23.1%

So actual rate of return will be 23.1%

Rate of return is independent of no of shares bought

jeff jeffy answered 2 years ago

You are an investor who bought 100 shares of a company at $35 per share with...

You are an investor who bought 100 shares of a company at $35 per share with a stock on margin of 60%. The stock is now trading at $50 per share, and the initial margin require- ments has been lowered to 50%. You now want to buy 300 more shares of the stock. What is the minimum amount of equity that you will have to put up in this transaction?

A Chinese investor bought 50,000 Yuans worth of stock in AMZN when it was selling for...

A Chinese investor bought 50,000 Yuans worth of stock in AMZN when it was selling for $950 and the exchange rate was 1USD = 6CNY. He just sold his shares for $ 1,650 per share and 1USD = 7CNY. What was the total return of the investor? What percentage of the total return was due to change in share price? What percentage of the return was due to change in exchange rate? Please show work on EXCEL with formulas.

Ms. Bodkin bought 500 shares of common stock of ABC Ltd. at $60 a share a...

Ms. Bodkin bought 500 shares of common stock of ABC Ltd. at $60 a share a few years ago. Currently, price per share of ABC's stock is $100. Suppose she takes a short position of 400 shares at the current price of $100. For the following possible spot price on the settlement date, denoted by S1, calculate capital gain(loss) for her total position in ABC's stock: (i)St = $120 (ii) St = $40 Does her short position of 400 shares...

On January 1, 2013, an investor bought 300 shares of Gottahavit, Inc., for $51 per share....

On January 1, 2013, an investor bought 300 shares of Gottahavit, Inc., for $51 per share. On January 3, 2014, the investor sold the stock for $56 per share. The stock paid a quarterly dividend of $0.35 per share. How much (in $) did the investor earn on this investment and, assuming the investor is in the 33%tax bracket, how much will she pay in income taxes on this transaction? Assume a preferential tax rate of 15% on dividends and...

On January 1, 2013, an investor bought 300 shares of Gottahavit, Inc., for $69 per share....

On January 1, 2013, an investor bought 300 shares of Gottahavit, Inc., for $69 per share. On January 3, 2014, the investor sold the stock for $74 per share. The stock paid a quarterly dividend of $0.24 per share. How much(in $) did the investor earn on this investment and, assuming the investor is in the 33% tax bracket, how much will she pay in income taxes on this transaction? Assume a preferential tax rate of 15% on dividends and...

An investor buys 400 shares of stock selling at $70 per share using a margin of...

An investor buys 400 shares of stock selling at $70 per share using a margin of 40%. The stock pays annual dividends of $2 per share. A margin loan can be obtained at annual interest cost of 6%. Determine what return on invested capital the investor will realize if the price of the stock increases to $94 within twelve months. A. 33.54% B. 34.29% C. 37.14% D. 55.90% E. 83.86%

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...

You bought 500 shares of GNX Ltd for $98.00 per share in May 2020. You are...

You bought 500 shares of GNX Ltd for $98.00 per share in May 2020. You are now worried about the market turning bearish, so you decide to buy 5 put options on the company's shares with each contract written on 100 shares at an exercise (or strike) price of $100.00 expiring in August 2020 for a premium of $3.00 per share. If at expiration the company's share price is $80.00 calculate the total profit or loss on your hedged position....

Suppose that you sell short 200 shares of Xtel, currently selling for $80 per share, and...

Suppose that you sell short 200 shares of Xtel, currently selling for $80 per share, and give your broker $10,000 to establish your margin account. a. If you earn no interest on the funds in your margin account, what will be your rate of return after one year if Xtel stock is selling at: (i) $85; (ii) $80; (iii) $75? Assume that Xtel pays no dividends. (Leave no cells blank - be certain to enter "0" wherever required. Negative values...

An investor sells short 500 shares of ABC Corporation on June 1, at a time when...

An investor sells short 500 shares of ABC Corporation on June 1, at a time when the price per share is $120. The position is closed out 3 months later, August 31, when the price per share is $100. A dividend of $4 per share was paid July 31, one month before the short position is closed out. Suppose that the investor must open a margin account at the time the short position is taken. The margin required is 50%...

Question