A stock pays $0.2 dividend per share annually. An investor bought one share of stock at $2 at the beginning of last year. At the end of last year, stock price became $2.4 and she bought another one share of stock. At the end of this year, she sold both shares at $3 per share. What is the time weighted geometric return? 35.26% 30.22% 31.66% 38.01%

A stock pays $0.2 dividend per share annually. An investor bought one share of stock at $2 at the beginning of last year. At the end of last year, stock price became $2.4 and she bought another one share of stock. At the end of this year, she sold both shares at $3 per share. What is the time weighted geometric return? 35.26% 30.22% 31.66% 38.01%

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

On January 1, you bought 100 shares of ABD stock for $19/share with funds that you borrowed at an annual rate of 8%. The stock paid dividends per share of $1.50 at the end of the first year, and of $2.20 at the end of year two. What rate of return did you earn if you sold the stock for $21/share at the end of year two. Hint: Compute the IRR per share. 14.52% 12.52% 9.99% 13.33% 15.12%.
brower bloom has preference shares outstanding that pay a dividend of R7,50 per share at the end of each year. the preference shares sell for r115.38 a share. what is the shares required rate of return?
One year ago, KJ Industries stock sold for $52 a share. Over the past year, the stock has returned 16.0 percent with half of that return coming from dividend income. What is the current price of this stock? Multiple Choice O о O $56.16 $47.84 $60.32 $43.68
Return for the entire period is (Round to two decimal places.)
You purchased a stock at a price of $70.72. The stock paid a dividend of $2.03 per share and the stock price at the end of the year is $63.02. What are your capital gains on this investment?
You bought a share for $1.89 exactly one year ago. The current share price is $1.12. The share paid a 13 cent dividend during the year. What is your percentage return for the year?
You purchased a stock for $53.4 a share and resold it one year later. Your total return for the year was 10.62 percent and the dividend yield was 6.18 percent. At what price (in $) did you resell the stock? Answer to two decimals.
Under peso-cost averaging, an investor will purchase P6,000 worth of stock each year for three years. The stock price is P40 in year 1, P30 in year 2 and P48 in year 3. A. What is the share purchased in every year? B. Compute the average price per share. C. Compute the average cost per share.
You purchased 250 shares of General Motors stock at a price of $77.81 two years ago. You sold all stocks today for $87.84. During this period the stock paid dividends of $5.44 per share. What is your annualized holding period return (annual percentage rate)?
You purchase 100 shares of stock for $40 a share. The stock pays a $2 per share dividend at year-end. a. What is the rate of return on your investment if the end-of-year stock price is (i) $38; (ii) $40; (iii) $44? (Leave no cells blank - be certain to enter "0" wherever required. Enter your answers as a whole percent.) Stock Price Rate of Return 38 40 % 44 %
You purchased a stock at a price of $48.01. The stock paid a dividend of $1.87 per share and the stock price at the end of the year is $54.01. What was the dividend yield?
You invested in a beverage stock earlier this year; January 1, at the price of $42.50. Suppose at the end of the year; December 31, the price of the stock sells at $48.78. Determine the capital gain yield of the stock.

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