Problem 12-5 (LO12.1) Wanda Sotheby purchased 155 shares of Home Depot stock at $61 a share....

Problem 12-5 (LO12.1)

Wanda Sotheby purchased 155 shares of Home Depot stock at $61 a share. One year later, she sold the stock for $70 a share. She paid her broker a commision of $41 when she purchased the stock and a commision of $48 when she sold it. During the 12 months she owned the stock, she received $132 in dividends. Calculate Wanda’s total return on this investment.

Total return

$

Expert Solution

CALCULATION OF THE RERUTN FROM THE INVESTMENT

PARTICULARS	AMOUNT

Sales (155 Shars X $ 70)	$ 10,850

Less: Purhcase Cost (155 Shares X 61)	$ 9,455
Less: Commssion on Purchase	$ 41
Less: Commssion on Sale	$ 48
Add: dividend Received	$ 132

Total Return on this ivnestment	$ 1,438

Answer = Total Return on this ivnestment = $ 1438

jeff jeffy answered 1 year ago

You purchased shares in Home Depot at the beginning of the year for $55 a share....

You purchased shares in Home Depot at the beginning of the year for $55 a share. Home Depot paid a $3 dividend throughout the year, and its share price ended the year at $50. If inflation that year was 3%, what was the real holding-period return for the year? Multiple Choice -6.44% -6.36% -11.74% -3.64%

You purchased 1,000 shares of stock at $42 a share. The stock is currently selling for...

You purchased 1,000 shares of stock at $42 a share. The stock is currently selling for $45 a share. The initial margin was 70 percent and the maintenance margin is 30 percent. What is your current margin position?

Problem 19-12 EPS; nonconvertible preferred stock; treasury shares; shares sold; stock dividend; options [LO19-4, 19-5, 19-6,...

Problem 19-12 EPS; nonconvertible preferred stock; treasury shares; shares sold; stock dividend; options [LO19-4, 19-5, 19-6, 19-7, 19-8, 19-10] On December 31, 2017, Dow Steel Corporation had 600,000 shares of common stock and 300,000 shares of 8%, noncumulative, nonconvertible preferred stock issued and outstanding. Dow issued a 4% common stock dividend on May 15 and paid cash dividends of $400,000 and $75,000 to common and preferred shareholders, respectively, on December 15, 2018. On February 28, 2018, Dow sold 60,000 common...

You are evaluating Home Depot (HD) stock. The stock is expected to experience supernormal growth in...

You are evaluating Home Depot (HD) stock. The stock is expected to experience supernormal growth in dividends of 10 percent, g_s, over the next five years. Following this period, dividends are expected to grow at a constant rate of 3.5 percent, g. The stock paid a dividend of $5.5 last year, and the required rate of return on the stock is 12.62 percent. The fair present value of the stock is what?

1. You purchased 10 shares of Resorts, Inc. stock at a price of $40 a share...

1. You purchased 10 shares of Resorts, Inc. stock at a price of $40 a share exactly one year ago. You have received dividends totaling $2 a share. Today, you sold your shares at a price of $50 a share. What is your total dollar return on this investment? (a) $10 (b) $12 (c) $50 (d) $80 (e) $120 2. Big Boy Equipment, Inc. is expected to pay an annual dividend in the amount of...

You purchased 800 shares of stock for $49.20 a share. The initial margin requirement is 65...

You purchased 800 shares of stock for $49.20 a share. The initial margin requirement is 65 percent and the maintenance margin is 35 percent. What is the lowest the stock price can go before you receive a margin call? What is the lowest the stock price can go before you receive a margin call if both the initial and maintenance margins are 100%? What is the lowest the stock price can go before you receive a margin call if both...

An investor purchased 200 shares of stock at $100 per share on 65% margin. Suppose the...

An investor purchased 200 shares of stock at $100 per share on 65% margin. Suppose the maintance margin is 40% at what price does the investor get a margin call? Regarding the previous question, if the price declines to $70 per share whats the return to the investors equity? What if the stock price rises to $150 per share? ignore interest and transaction costs.

Problem 12-05 (Algorithmic) The price of a share of a particular stock listed on the New...

Problem 12-05 (Algorithmic) The price of a share of a particular stock listed on the New York Stock Exchange is currently $42. The following probability distribution shows how the price per share is expected to change over a three-month period: Stock Price Change ($) Probability -1 0.10 0 0.05 1 0.20 2 0.30 3 0.10 4 0.05 5 0.20 Set up intervals of random numbers that can be used to generate the change in stock price over a three-month period....

(Using EBIT-EPS break-even analysis) Home Depot, Inc. (HD), had 1244 million shares of common stock outstanding...

(Using EBIT-EPS break-even analysis) Home Depot, Inc. (HD), had 1244 million shares of common stock outstanding in 2016, whereas Lowes Companies, Inc. (LOW), had 929 million shares outstanding. Assuming Home Depot's 2016 interest expense is $919 million, Lowes' interest expense is $552 million, and a 35 percent tax rate for both firms, what is their break-even level of operating income (i.e., the level of EBIT where EPS is the same for both firms)? The EBIT indifference level is $ nothing....

The following frequency distribution shows the monthly stock returns (in percent) for Home Depot for the...

The following frequency distribution shows the monthly stock returns (in percent) for Home Depot for the years 2003 through 2007. (You may find it useful to reference the appropriate table: chi-square table or F table) Monthly Returns Observed Frequency Less than ?5 13 ?5 up to 0 16 0 up to 5 20 5 or more 11 n = 60 SOURCE: www.yahoo.finance.com. Over this time period, the following summary statistics are provided: Mean Median Standard Deviation Skewness Kurtosis 0.31% 0.43%...

Question