you have 5000 shares of Aramco stock. One year ago, each share of the stock was...

you have 5000 shares of Aramco stock. One year ago, each share of the stock was worth SR 40. Aramco has offered to buy back your shares for SR225, 000. The interest rate, which Aramco offered, is closest to:

	A.	0.115
	B.	0.125
	C.	0.135
	D.	0.105

Expert Solution

Answer - 0.125

Calculation

No. of shares : 5000

Each share cost : 40

Value : No. of shares * Each shares Cost

= 5000* 40

= 200000

BuyBack Price : 225000

Interest Rate = (225000-200000)/200000

= 0.125

Hence , Interest Rate which Aramco offered is closest to 0.125

and all other option are incorrect as per calcu

Rahul Sunny 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...

An investor purchased 100 shares of common stock at Ghc20 per share one year ago. The...

An investor purchased 100 shares of common stock at Ghc20 per share one year ago. The company declared and paid a dividend of Ghc2 per share during the year. The investor sold the stock for Ghc21 per share after the one year holding period. Calculate the cedi return from this investment. Calculate the HPR for this investment. Partition the HPR into its dividend and capital appreciation components.

One year ago you bought a share of Bavarian Sausage stock for $46.50. During the year...

One year ago you bought a share of Bavarian Sausage stock for $46.50. During the year the stock paid a $2.75 dividend. You have decided to sell the stock exactly one year after the purchase (today). If dividends are growing at 4% and the required rate of return is 9.42%, what is the percentage return of your stock investment? a. 5.91% b. 13.44% c. 26.69% d. 19.39%

One year ago, you purchased a stock at a price of $57.16 per share. Today, you...

One year ago, you purchased a stock at a price of $57.16 per share. Today, you sold 4) your stock at a loss of 18.11 percent. Your capital loss was $12.21 per share. What was the dividend yield on this stock?

You bought a stock one year ago for $ 50.14 per share and sold it today...

You bought a stock one year ago for $ 50.14 per share and sold it today for $ 58.83 per share. It paid a $ 1.74 per share dividend today. If you assume that the stock fell $ 7.42 to $ 42.72 instead: a. Is your capital gain different? Why or why not? b. Is your dividend yield different? Why or why not?

You purchased 30.00 shares of Bank of America one year ago for $8.48 per share. Today,...

You purchased 30.00 shares of Bank of America one year ago for $8.48 per share. Today, one share trades for $9.05 and paid a dividend of $1.18 per share. A) What is the capital gain rate from holding the stock the past year? B) What is the dividend yield from holding the stock the past year? C) What is the total return for holding the stock the past year? D) Based on your number of shares purchased, what is the...

You purchased 100 shares of General Motors stock at a price of $101.90 one year ago....

You purchased 100 shares of General Motors stock at a price of $101.90 one year ago. You sold all stocks today for $94.51. During the year, the stock paid dividends of $5.62 per share. What is your holding period return? Round the answers to two decimal places in percentage form. (Write the percentage sign in the "units" box)

Assume you purchased the stock of Del Mar Spa at $35 per share one year ago,...

Assume you purchased the stock of Del Mar Spa at $35 per share one year ago, its current price is $42. Sitting on an enviable huge cash coffer, Del Mar Spa is considering three alternatives of paying dividend to its shareholders. Choices #1 and #2 are to pay a dividend of $2 and $3 respectively. Choice #3 is paying nothing. Further assume that the price drop on ex date will be equal to the dividend per share. Your income tax...

one year ago you invested $5000. today your investment is worth $6178.40. What rate of interest...

one year ago you invested $5000. today your investment is worth $6178.40. What rate of interest did you earn?

Sarah and James Hernandez purchased 250 shares of Macy’s stock at $25 a share. One year...

Sarah and James Hernandez purchased 250 shares of Macy’s stock at $25 a share. One year later, they sold the stock for $30.00 a share. They paid a broker a commision of $10 when they purchased the stock and a commision of $14 when they sold the stock. During the 12-month period the couple owned the stock, Macy’s paid dividends that totaled $1.84 a share. Calculate the Hernandez total return for this investment. (Do not round intermediate calculations. Round your...

Question