Question

In: Finance

Sam buys 100 shares of Acme stock at $100 per share on January 1, Year 1....

Sam buys 100 shares of Acme stock at $100 per share on January 1, Year 1. At the end of the first year (December 31, Year 1), she buys 100 more shares at $120 per share. At the end of the second year (December 31, Year 2), she buys another 100 shares for $135 per share. The stock pays a dividend of $2.00 per share on December 29th of each year. Acme is trading at $169.80 as of December 31, Year 3. What is the time weighted return for Acme since January 1, Year 1 to today?

Solutions

Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 9 months ago
Next > < Previous

Related Solutions

Sam buys 100 shares of Acme stock at $100 per share on January 1, Year 1....
Sam buys 100 shares of Acme stock at $100 per share on January 1, Year 1. At the end of the first year (December 31, Year 1), she buys 100 more shares at $120 per share. At the end of the second year (December 31, Year 2), she buys another 100 shares for $135 per share. The stock pays a dividend of $2.00 per share on December 29th of each year. Acme is trading at $169.80 as of December 31,...
1.            John buys shares of stock in Acme Corp. on January 1, 2018 for $50. He...
1.            John buys shares of stock in Acme Corp. on January 1, 2018 for $50. He gifts the stock to Mary on July 1, 2018 when the stock has a fair market value (fmv) of $60. Mary sells the stock on September 1 , 2018 for $80.                a.            What is the gain /loss recognized by John?      ______________                                 What is the character of the gain/loss? _____________                b.            What is the gain /loss recognized by Mary?     ______________                                 What...
4.            John buys shares of stock in Acme Corp. on January 1, 2018 for $50. John...
4.            John buys shares of stock in Acme Corp. on January 1, 2018 for $50. John dies July 1, 2018 when the stock has a fmv of $60. Mary inherits the stock from John’s estate.          Mary sells the stock on September 1, 2018 for $80.                a.            What is the gain /loss recognized by John’s estate?      ______________                                 What is the character of the gain/loss? _____________                b.            What is the gain /loss recognized by Mary?      ______________                                 What...
Nico bought 100 shares of Cisco Systems stock for $30.00 per share on January 1, 2013....
Nico bought 100 shares of Cisco Systems stock for $30.00 per share on January 1, 2013. He received a dividend of $2.00 per share at the end of 2013 and $3.00 per share at the end of 2014. At the end of 2015, Nico collected a dividend of $4.00 per share and sold his stock for $33.00 per share. What was Nico's realized holding period return? -36.36% +36.36% -40% +40%
On January 1, 2008 SSS buys 500 shares of Co common stock for $50/share for the...
On January 1, 2008 SSS buys 500 shares of Co common stock for $50/share for the stock portfolio as short-term investment.   SSS’s purchase represents 1% of outstanding Co stock and the company exerts no influence on Co. Journalize the purchase by SSS. On February 1 Co pays a $1/share dividend. Journalize SSS’s receipt of the dividend. On Feb 15, Co reports $1mm net income. What JE does the company make, if any, to recognize the income? On March 1 SSS...
Assume an investor buys 5 shares of Stock A on January 1 2015 for $80 per...
Assume an investor buys 5 shares of Stock A on January 1 2015 for $80 per share. During the year the stock paid $2 in dividends per share. On Jan 1, 2016, the investor purchases another 8 shares at $84. During the year the stock paid another $2 dividend. On Jan 1, 2017, the investor sells 3 shares for $85, but collects the same $2 in dividends throughout 2017 on the remaining shares. Finally on Jan. 1, 2018 the investor...
Mr. Suphi buys 100 shares of ABC stock on margin. The share price is $50 and...
Mr. Suphi buys 100 shares of ABC stock on margin. The share price is $50 and the initial margin is 50%. What is the maintenance margin on the account if the margin call is triggered at a share price of $35? Ignore the interest on the loan. b) Mr. Suphi buys 200 shares of EFG stock on margin. The share price is $60 and the initial margin is 50%. What is Mr. Suphi’s rate of return on equity if he...
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.
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%
Lisa Lasher buys 380 shares of stock on margin at $22 per share. If the margin...
Lisa Lasher buys 380 shares of stock on margin at $22 per share. If the margin requirement is 50 percent, how much must the stock rise for her to realize a 45-percent return on her invested funds? (Ignore dividends, commissions, and interest on borrowed funds.) Round your answer to the nearest cent.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT