Answered: Date Jan. 1, 2005 Feb. 1, 2005 Mar. 1,…

Date Jan. 1, 2005 Feb. 1, 2005 Mar. 1, 2005 Apr. 1, 2005 Jan. 1, 2006 Stock Price (after Event) $100 $95 $65 $55 $70 Event Issue 10% Preferred Stocks Split 2:3 $3.00 dividends per stock

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter15: Capital Investment Analysis

Section: Chapter Questions

Problem 15.2.2MBA

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Question

What is the annual rate of return on the stock (percentage) before tax?

Date
Jan. 1, 2005
Feb. 1, 2005
Mar. 1, 2005
Apr. 1, 2005
Jan. 1, 2006
Stock Price (after Event)
$100
$95
$65
$55
$70
Event
Issue 10% Preferred Stocks
Split 2:3
$3.00 dividends per stock

Definition Definition Percentage gain or loss from a specific investment over time. The rate of return is the difference between the closing and initial values of an investment divided by the initial value of the investment. The closing value includes any intermediate cash flows such as dividends or interest amounts.

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Complete the table by finding the market price
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7:03 < 1/439 The following table shows your stock positions at the beginning of the year, the dividends that each stock paid during the year, and the stock prices at the end of the year. Company US Bank PepsiCo 3DS Uniphase Duke Energy Shares 200 100 300 100 Portfolio Return Dollar return Percentage return Share Beginning or Price < 60.88 19.88 27.95 What is your portfolio dollar return and percentage return? Note: Do not round intermediate calculations and round your final answer to 2 decimal places. 1% Year Dividend Per Share $ 2.16 1.36 1.36 Edit 11 End of Year Price Price $ 44.43 63.55 17.66 33.71 O Docum.... Ⓡ Delete 50 l ||| : More
Haresh
What is the annual rate of return on the stock (percentage) before tax? 37.67% 29.19% 23.55%
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