A B 1 Purchase price per share $57 2 Total commission $35 3 Dividend at year 1 $1.80 4 Dividend at second year $1.93 5 Number of shares bought 100 6 Total purchase price =B5*B1 7 Purchase price with commission =B6+B2 8 Selling price at the end of second year $59 9 Total selling price |=B8*B5 10 Commission on selling $44 11 Selling price net of commission =B9-B10 12 Total dividend in year 1 =B3*B5 13 Total dividend in year 2 =B4*B5 14 (a) Dividend yield at purchase =B12/B6 15 (b) Dividend yield at sale =B13/B9 16 (c) Total return |=B11+B12+B13-B7 17 Holding period return 18 (d) Annualized holding period yield =B16/B7 =(1+B17)^(1/2)-1
A B 1 Purchase price per share $57 2 Total commission $35 3 Dividend at year 1 $1.80 4 Dividend at second year $1.93 5 Number of shares bought 100 6 Total purchase price =B5*B1 7 Purchase price with commission =B6+B2 8 Selling price at the end of second year $59 9 Total selling price |=B8*B5 10 Commission on selling $44 11 Selling price net of commission =B9-B10 12 Total dividend in year 1 =B3*B5 13 Total dividend in year 2 =B4*B5 14 (a) Dividend yield at purchase =B12/B6 15 (b) Dividend yield at sale =B13/B9 16 (c) Total return |=B11+B12+B13-B7 17 Holding period return 18 (d) Annualized holding period yield =B16/B7 =(1+B17)^(1/2)-1
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:A
B
1
Purchase price per share
$57
2
Total commission
$35
3
Dividend at year 1
$1.80
4 Dividend at second year
$1.93
5
Number of shares bought
100
6
Total purchase price
=B5*B1
7
Purchase price with commission
=B6+B2
8
Selling price at the end of second year
$59
9
Total selling price
|=B8*B5
10
Commission on selling
$44
11
Selling price net of commission
=B9-B10
12
Total dividend in year 1
=B3*B5
13
Total dividend in year 2
=B4*B5
14
(a) Dividend yield at purchase
=B12/B6
15
(b) Dividend yield at sale
=B13/B9
16
(c) Total return
|=B11+B12+B13-B7
17
Holding period return
18
(d) Annualized holding period yield
=B16/B7
=(1+B17)^(1/2)-1
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