Give true answer this financial accounting An investor purchased shares for $30 four months agoand has received two monthly dividend payments of$0.75 each. If the stock now sells for $32, what is theholding period return?

The holding period return (HPR) is calculated using the formula: HPR=Beginning ValueEnding…

Answered: An investor purchased shares for $30…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter7: Common Stock: Characteristics, Valuation, And Issuance

Section: Chapter Questions

Problem 17P

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What is the holding period return on these financial accounting question?
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You purchase 100 shares of stock for $25 a share. The stock pays a $3 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) $22; (ii) $25; (iii) $26? b. What is your real (inflation-adjusted) rate of return if the inflation rate is 2%?
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An investor purchases a stock for $50 and over the next year, receives a $0.75 dividend. At the end of the year, the stock is priced at $53. In the second year, the stock pays a $1.00 dividend and at the end of the year the stock is priced at $51. a. Compute the dollar return for each year. b. Compute the percentage return for each year.
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An investor purchased shares for $30 four months ago and has received two monthly dividend payments of $0.75 each. If the stock now sells for $32, what is the holding period return?