Please correct answer and step by step solution (Calculating rates of return) Blaxo Balloons manufactures and distributes birthday balloons. At the beginning of the year Blaxo's common stock was selling for $20.22 but by year end it was only$18.40. If the firm paid a total cash dividend of $2.27 during the year, what rate of return would you have earned if you had purchased the stock exactly one year ago? What would your rate ofreturn have been if the firm had paid no cash dividend?The rate of return you would have earned is %. (Round to two decimal places.)

Explanation of the Rate of Return:The Rate of return on investment is the return that one has earned…

Answered: (Calculating rates of return) Blaxo…

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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(Calculating rates of return) Blaxo Balloons manufactures and distributes birthday balloons. At the beginning of the year Blaxo's common stock was selling for $21.75 but by year end it was only $19.18. If the firm paid a total cash dividend of $2 12 during the year, what rate of return would you have earned if you had purchased the stock exactly one year ago? What would your rate of return have been if the firm had paid no cash dividend? The rate of return you would have earned is%. (Round to two decimal places) The rate of return you would have earned if the firm paid no cash dividend is% (Round to two decimal places.)
Blaxo Balloons manufactures and distributes birthday balloons. At the beginning of the year Blaxo's common stock was selling for $21.32 but by year end it was only $20.17. If the firm paid a total cash dividend of $2.49 during the year, what rate of return would you have earned if you had purchased the stock exactly one year ago? What would your rate of return have been if the firm had paid no cash dividend? Question content area bottom Part 1 The rate of return you would have earned is enter your response here%. (Round to two decimal places.) Part 2 The rate of return you would have earned if the firm paid no cash dividend is enter your response here%. (Round to two decimal places.)
Blaxo Balloons manufactures and distributes birthday balloons. At the beginning of the year Blaxo's common stock was selling for $19.93 but by year end it was only $17.82. If the firm paid a total cash dividend of $1.98 during the year, what rate of return would you have earned if you had purchased the stock exactly one year ago? What would your rate of return have been if the firm had paid no cash dividend? Question content area bottom Part 1 The rate of return you would have earned is enter your response here%. (Round to two decimal places.)
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(Calculating rates of return) The common stock of Placo Enterprises had a market price of $10.38 on the day you purchased it just one year ago. During the past year the stock had paid a dividend of $0.74 and closed at a price of $11.57. What rate of return did you earn on your investment in Placo's stock? The rate of return you earned on your investment in Placo's stock is%. (Round to two decimal places.)
the stock of midway cement is currently selling for $20 a share and is expected to pay a $1.5 divident at the end of the year. if you bought the stock now and sold it for 24$ after reciving the divident, what rate of return would you earn?
Car Rental Service's stock price is expected to be $85 in one year immediately after paying a dividend of $3.87. If its equity cost of capital is 12%, what is the expected capital gain in dollars if you sell the stock one year from today immediately after receiving the dividend?
Jenny Banks is interested in buying the stock of Fervan, Inc., which is increasing its dividends at a constant rate of 9.0 percent. Last year the firm paid a dividend of $2.65. The required rate of return is 17.0 percent. What is the current value of this stock? (Do not round intermediate calculations. Round answer to 2 decimal places, e.g. 15.25.) What should be the price of the stock in year 5? (Do not round intermediate calculations. Round answer to 2 decimal places, e.g. 15.25.)
Please only correct or you can skip
Propulsion Sciences' (PS) stock dividend has grown at 0.06 per year for as long as anyone can remember. Investors believe that a year from now the company will pay a dividend of $3 and that dividends will continue their 0.06 growth indefinitely. If the market price Is on PS stock is 25 and it is under valued by $3.5 and the company pays $2 as flotaticn cost. what is the cost of the stock?
(Calculating rates of return) The common stock of Placo Enterprises had a market price of $9.96 on the day you purchased it just one year ago. During the past year the stock had paid a dividend of $0.85 and closed at a price of $11.55. What rate of return did you earn on your investment in Placo's stock? Question content area bottom Part 1 The rate of return you earned on your investment in Placo's stock is enter your response here%. (Round to two decimal places.)
The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow 6% per year. Callahan's common stock currently sells for $27.25 per share; its last dividend was $2.00; and it will pay a $2.12 dividend at the end of the current year. Using the DCF approach, what is its cost of common equity? Do not round intermediate calculations. Round your answer to two decimal places. If the firm's beta is 0.6, the risk-free rate is 5%, and the average return on the market is 12%, what will be the firm's cost of common equity using the CAPM approach? Round your answer to two decimal places. If the firm's bonds earn a return of 10%, based on the bond-yield-plus-risk-premium approach, what will be rs? Use the midpoint of the risk premium range discussed in Section 10-5 in your calculations. Round your answer to two decimal places. If you have equal confidence in the inputs used for the three approaches, what is your estimate of Callahan's cost of common…

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