KCompute the total and annual return on the following investment.Two years after paying $3600 for shares in a startup company, you sell the shares for $2900 (at a loss).The total return is%.(Do not round until the final answer. Then round to the nearest tenth as needed.)The annual return is %.(Do not round until the final answer. Then round to the nearest tenth as needed.)

Shares are a type of financial instrument or a financial asset. Investment can shares can give…

Answered: Compute the total and annual return on…

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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Similar questions

Two years ago, Lou Marshall, Inc. deposited $18,125 in an investment account for the purpose of buying new equipment four years from today. Last year, it added another $20,212 to this account. The company plans on making a final deposit of $17,503 to the account today. How much will be available when it is ready to buy the equipment, assuming the company earns 13.27% APR on its invested funds? Choose the closest amount. $118,681.22 $92,502.23 $91,918.47 $104,777.28 $72,097.87
Nancy Cardoza (hypothetical person) invested $4,300 in ExxonMobil stock because her research indicated the stock should earn an average return of 9 percent for the investors over the next five years. If ExxonMobil investors do earn 9 percent each year, what will her $4,300 investment be worth at the end of five years? Note: I am not sure which table we should use for this problem or how to round the time value factor to 3 decimal places and final answer to 2 decimal places. Future value = ?????
(i) A client at ZBX Fin Planning deposits $85,000 in an account today in hope that it grows to $150,000 in 6 years. What annual compounded rate would the client need to earn? (Provide answer to nearest basis point, as in "12.34%" or "0.1234") (ii) Now suppose the client realizes she can expect to earn 9.96% APR compounded monthly in another portfolio marketed by ZBX. If the client earns that rate, how many years would it take to realize the above $150,000 goal? (Round number of years to nearest hundredth, as in "1.23" years)
1. You just sold a stock for $85. If the stock appreciated at 6% annually, and you owned it for eight years, what was the original price that you paid for the stock? 2. You are considering buying some order fulfillment software that is projected to save your company $27,500 per year for 3 years. If the current rate your company uses to evaluate its investments is 9%, what are you willing to pay for this investment?
Pls send me solution fast within 10 min..i will rate for sure . Solution must be in typed form..
Coming Up Roses has grown into a very successful business and you have just received an offer from someone to purchase the business from you for $1.2 million. The potential buyer has offered you $400,000 at the time of sale, $600,000 at the end of the growing season, in 6 months, and the balance, $200,000 in 1.5 years from now. What is the present value of this offer if you could invest at 6% compounding monthly?
You are looking to invest into Mona's Mayhem - a punk rock entertainment empire. Mona's Mayhem is expected to earn $8.98 per share next year and earnings are expected to grow by 1.7% forever. Mona's Mayhem reinvests 70% of its earnings each year. You would like a rate of return on your investment of 11.3% per year. How much are you willing to pay per share for Mona's Mayhem? (please round your answer to the nearest penny)
You invested $1,000 in GM shares when the stock price was $15. After a month, GM price went up to $27. Step 1. What what the return you obtained in that month? (Do not type this answer) Step 2. If you consistently attain the same monthly return for the next 4 years, how much money will you have in your account? This is the answer to this question. Hints: Time is 4 years. This problem involves monthly compounding. The return you calculate is already monthly. Round your answer to the nearest three decimals if needed. Do not type the $ symbol.
You invest $900 in stock A and $900 in stock B. If you earn 10 percent on stock A and 5 percent on stock B and hold each security for 14 years, what are the terminal values for each investment? Round your answers to the nearest cent. Stock A: $ Stock B: $ If you continue to hold each security and earn the same returns for 24 years, how much more will stock A generate than stock B over the entire time period? (When you invest for retirement, you should think about the impact of returns over time.) Round your answer to the nearest cent. $
K Compute the total and annual returns on the described investment. Six years after buying 200 shares of XYZ stock for $40 per share, you sell the stock for $12,100. The total return is %. (Do not round until the final answer. Then round to one decimal place as needed.) The annual return is%. (Do not round until the final answer. Then round to one decimal place as needed.)
You want to investment for retirement. You inherited $50,000 in April 2020. The Stock Market has lost 20% of its value from its high in 2019. Should you: A. Wait for the Stock Market to go down another 10 Percent? B. Invest the entire $50,000 now? C. Invest a small amount each month starting this month. Explain why you selected one of the strategies above.
Compute the total and annual returns on the described investment. Six years after buying 200 shares of XYZ stock for $40 per share, you sell the stock for $12,300. The total return is %. (Do not round until the final answer. Then round to one decimal place as needed.)

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