At the beginning of the year, you purchased a share of stock for $55. Over the year the dividends paid on the stock were $2.50 per share. a. Calculate the return if the price of the stock at the end of the year is $50. (Negative amount should be indicated by a mínus sign. Round your answer to 2 decimal places. (e.g., 32.16)) b. Calculate the return if the price of the stock at the end of the year is $60. (Round your answer to 2 decimal places. (e.g., 32.16)) a. Return b. Return % %

At the beginning of the year, you purchased a share of stock for $55. Over the year the dividends paid on the stock were $2.50 per share. a. Calculate the return if the price of the stock at the end of the year is $50. (Negative amount should be indicated by a mínus sign. Round your answer to 2 decimal places. (e.g., 32.16)) b. Calculate the return if the price of the stock at the end of the year is $60. (Round your answer to 2 decimal places. (e.g., 32.16)) a. Return b. Return % %

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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Allagash Corporation stock moves from $108 at the beginning of the period to $124 at the end of the period, and in addition, pays $2 in dividends at the end of the period. What is the rate of return in percent on Allagash stock (two-place accuracy)? For a two-place accuracy in percent, you need four-place accuracy as a rate of return!
The following table contains prices and dividends for a stock. All prices are after the dividend has been paid. If you bought the stock on January 1 and sold it on December 31, what is your realized return? Hint: Make sure to round all intermediate calculations to at least five decimal places. (Click on the following icon in order to copy its contents into a spreadsheet.) Jan 1 Mar 31 Jun 30 Sep 30 Dec 31 Price 10.09 11.09 10.59 11.19 11.09 Dividend 0.16 0.16 0.16 0.16 Your realized return is%. (Round to one decimal place.)
Suppose a stock had an initial price of $56 per share, paid a dividend of $1.60 per share during the year, and had an ending share price of $50. Compute the percentage total return, dividend yield, and capital gains yield. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
You purchased a stock at a price of $57.04. The stock paid a dividend of $2.31 per share and the stock price at the end of the year is $62.59. What is the capital gains yield?
You bought a share of 6.8 percent preferred stock for $98.68 last year. The market price for your stock is now $103.92. What is your total return for last year? Assume a par value of $100. Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Total return for last year %
You purchased 200 shares of preferred stock on January 1 for $14.36 per share. The stock pays an annual dividend of $1.26 per share. On December 31, the market price is $16.69 per share. What is your percent return for the year if you hold on to the stock? The correct answer is 25%. How was that found? Please do not answer in Excel format
Using the data in the table to the right, calculate the return for investing in the stock from January 1 to December 31. Prices are after the dividend has been paid. (Click on the following icon in order to copy its contents into a spreadsheet.) Return for the entire period is %. (Round to two decimal places.) Date Jan 1 Feb 5 May 14 Aug 13 Nov 12 Dec 31 Price $33.88 $30.67 $29.49 $32.38 $39.07 $41.99 Dividend $0.17 $0.17 $0.17 $0.17
Suppose you bought 150 shares of stock at an initial price of $47 per share. The stock paid a dividend of $0.46 per share during the following year, and the share price at the end of the year was $50. Compute your total dollar return on this investment.
You bought a stock one year ago for $48.47 per share and sold it today for $57.18 per share. It paid a $1.46 per share dividend today. What was your realized return? The realized return was %. (Round to one decimal place.)
You purchased a stock at a price of $40.71. The stock paid a dividend of $1.47 per share and the stock price at the end of the year is $46.21. What was the dividend yield?
One year ago, you purchased 454 shares of stock for $28.98 a share. The stock pays $1.02 a share in dividends each year. Today, you sold your shares for $25 a share. What is your total dollar return on this investment? Answer to two decimals
You bought a stock one year ago for $49.54 per share and sold it today for $59.36 per share. It paid a $1.29 per share dividend today. What was your realized return? The realized return was %. (Round to one decimal place.)

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