financial accounting is answer An investor's portfolio currently is worth $1 million. During the year,the investor sells 1,000 shares of Microsoft at a price of $80 per shareand 2,000 shares of Ford at a price of $40 per share. The proceedsare used to buy 1,600 shares of IBM at $100 per share.a. What was the portfolio turnover rate?b. If the shares in Microsoft originally were purchased for $70 eachand those in Ford were purchased for $35, and the investor's tax rateon capital gains income is 20%, how much extra will the investorowe on this year's taxes as a result of these transactions?

Step 1: Definition of Portfolio and Portfolio Turnover RateA portfolio is a collection of financial…

Answered: An investor's portfolio currently is…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter18: Initial Public Offerings, Investment Banking, And Capital Formation

Section: Chapter Questions

Problem 9MC

See similar textbooks

Similar questions

Suppose you purchase one share of the stock of Volatile Engineering Corporation at the beginning of year 1 for $36. At the end of year 1, you receive a $2 dividend and buy one more share for $30. At the end of year 2, you receive total dividends of $4 (i.e., $2 for each share) and sell the shares for $36.45 each. The dollar-weighted return on your investment is A. 12.35%. B. 4.08%. C. 8.53%. D. -1.75%. E. 8.00%.
Suppose you purchase one share of the stock of Red Devil Corporation at the beginning of year 1 for $43.00 At the end of year 1, you receive a dividend of $2, and buy one more share for $47.00. At the end of year 2, you receive total dividends of $4 (e., $2 for each share), and sell the shares for $55.00 each. What is the time-weighted return on your investment? (Round your answer to 2 decimal places. Do not round intermediate calculations.) Return 1%
Suppose you purchase one share of the stock of Volatile Engineering Corporation at the beginning of year 1 for $36. At the end of year 1, you receive a $2 dividend, and buy one more share for $30. At the end of year 2, you receive total dividends of $4 (i.e., $2 for each share), and sell the shares for $36.45 each. The time-weighted return on your investment is 12.35% -1.75% 4.08% 8.53% O 11.46%
Suppose you purchase one share of the stock of Cereal Correlation Company at the beginning of year 1 for $35. At the end of year 1, you receive a $3 dividend, and buy one more share for $44. At the end of year 2, you receive total dividends of $6 (i.e., $3 for each share), and sell the shares for $50 each. The time-weighted return on your investment is? When performing the calculations, do not round any inputs or interim results until you get the final answer. Round your final answer to four places after the decimal point. The dollar-weighted return on your investment is? When performing the calculations, do not round any inputs or interim results until you get the final answer. Round your final answer to four places after the decimal point.
General Account questions
What is the answer a b c d ? General Accounting
Suppose you purchased 70 shares of ABC., Inc. for $46.27 per share. The company paid a dividend of $1.6 per share during the year and had an ending share price of $43.2. What is the dollar return on your investment?
Please solve this question financial accounting
You purchased 50 shares of Z stock in January 2022 for $40 per share. Each year you received a cash dividend of $0.75 per share. In December of 2026, you sold 50 shares of Z for $60 per share. Brokerage fees amounted to 3.0% of the purchase price and 3.0% of the sales proceeds. What is your total cumulative return (in percent) over the investment period? 51.26% 50.36% 44.87% 48.73%
You buy a stock for $10. During the year, the stock paid a $1 cash dividend. At the end of the year, you sell the stock for a total of $11 total. What is the “total return” on your investment? (remember, total return is more than just capital gains.)
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%?
In your portfolio, you own Delta Air Lines and Coca Cola Company stock in which you initially purchase ten shares of each stock at $85 and $30 respectively. At the end of a month, DAL is valued at $90 and KO is valued at $28. Assume, they don’t pay a dividend. What is the initial value of the investment? What is the return (expressed as a percent) for Delta at the end of the first month? What is the return (expressed as a percent) for Coke at the end of the first month?

SEE MORE QUESTIONS

Recommended textbooks for you

Intermediate Financial Management (MindTap Course…

Finance

ISBN:

9781337395083

Author:

Eugene F. Brigham, Phillip R. Daves

Publisher:

Cengage Learning