Angela invested his savings in shares of a new company. The company's share price dropped by $3.25 at the end of the first year, and by a further $0.75 at the end of the second year. The share price was $28.44 at the end of the second year. a. Calculate the original share price (at the beginning of the first year). Round to the nearest cent. b. Calculate the percent change in the share price over the two-year period. % Round to two decimal places.

Angela invested his savings in shares of a new company. The company's share price dropped by $3.25 at the end of the first year, and by a further $0.75 at the end of the second year. The share price was $28.44 at the end of the second year. a. Calculate the original share price (at the beginning of the first year). Round to the nearest cent. b. Calculate the percent change in the share price over the two-year period. % Round to two decimal places.

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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Subject : - Finanace An investor bought 10 shares of stock T for $800 per share. One year later, he sold the stock for $575 per share. Calculate the return on this investment
company X has 100 shares outstanding. It earns $2,000 per year perpetually and announces that it will use $1,000 to repurchase its shares in the open market instead of paying dividends. Calculate the number of shares outstanding at the end of year 1, after the first share repurchase, if the required rate of return is 10%. A. 110.0 B. 95.45 C. 100.0 D. 104.55 E. 90.91
You currently own 2,000 shares of Industrial Industries stock. You purchase the stock for $128.34 per share, and it has risen to $134 per shares. If the stock paid $2.40 per share in dividends during the year, what was your holding period return?
In you cash account, you buy 100 shares of XYZ Corporation at a price of $10 per share. Two months later, XYZ pays a dividend $0.21 per share. You sell all 100 shares of XYZ three months later at a price of $12 per share. What is your total return on this trade in dollar amount?
A year ago, Kim Altman purchased 190 shares of BLK, Inc. for $27.00 on margin. At that time the margin requirement was 60 percent. If the interest rate on borrowed funds was 6 percent and she sold the stock for $35.50, what is the percentage return on the funds she invested in the stock? Round your answer to two decimal places. %
An investor purchased 50 shares of stock in a company for $600. One year later, the investor sold allI 50 shares for $13 per share. What is the investor's rate of return? А. -8.3% В. 8.3% С. 7.7% D. -7.7%
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An investor purchased 50 shares of stock in a company for $1,600. One year later, the investor sold all 50 shares for $1,500. What is the investor's rate of return? A. -6.7% B. 6.7% C. -6.3% D. 6.3%
Suppose you owned stock in a company for the last three years. You originally bought the stock three years ago for $30 and just sold it for $56. The stock paid an annual dividend of $1.35 on the last day of each of the past three years. What is your realized return on this investment?15.36 percent 36.14 percent 26.85 percent 37.58 percent
Two years ago, you purchased 100 shares of General Mills Corporation. Your purchase price was $61 a share, plus a total commission of $38 to purchase the stock. During the last two years, you have received total dividends of $2.48 per share. Also, assume that at the end of two years, you sold your General Mills stock for $66 a share minus a total commission of $36 to sell the stock. Calculate the total return for your investment and the annualized holding period yield. O Total return on the investment: $574. Annualized holding period yield: 4.70%. O Total return on the investment: $674. Annualized holding period yield: 5.52%. O Total return on the investment: $774. Annualized holding period yield: 6.34%. O Total return on the investment: $874. Annualized holding period yield: 7.16%.
You purchased 10 shares of common stock in Abigail's Café at the beginning of this year for $38.00 per share and held the stock for one year. The stock paid a dividend of $2/share during the year. You were able to sell the stock for $40 per share. What was your holding period return?
A company has net earnings of AED 10,000 for the current vear and suppose the company maintai the same earnings for the next year. The company has 1,000 total outstanding shares during the current year. The company decides to buyback 40% of its shares in the following year. Show how this decision will impact the company's earnings per share?

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