**Stock Investment Calculation Example**During 2021, Bob Collins purchased 300 shares of common stock issued by Doctor's Medical Supply for $14,600, including commission. Later in the same year, Bob sold the shares for $15,600 after commission. Calculate the following (round all answers to two decimal places):1. **Profit on this stock transaction:** $\_\_\_2. **Percentage return on investment:** $\_\_\_% To solve these, follow the steps below:**1. Calculating Profit:** - Subtract the purchase cost from the selling price. - Profit = Selling Price - Purchase Price = $15,600 - $14,600**2. Calculating Percentage Return on Investment:** - Divide the profit by the initial purchase cost, then multiply by 100 to get the percentage. - Percentage Return = (Profit / Purchase Price) × 100Ensure all calculations are rounded to two decimal places for precision.

When a person makes investment in stocks and any other type of financial asset or security then it…

Answered: During 2021, Bob Collins purchased 300…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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An investor purchases a share for £6.89 at the beginning of the year. Six months later, the investor receives a dividend of £0.08 (net of tax) and immediately sells the share for £7.26. Capital gains tax of 30% is paid on the difference between the sale and the purchase price. Calculate the net annual effective rate of return the investor obtains on the investment. 数字 Enter a percentage correct to 2 decimal places %
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You purchased a stock for $50.00 share at the end of 2014. At the end of the years 2015 – 2018 the stock was worth $54.75, $59.13, $56.41, and $60.06 respectfully. You sold the stock at the end of 2019 for $62.00 per share. Calculate your geometric mean annual return for the stock during the period in which you owned it. Report your answer to 2 decimal places You purchased a stock for $50.00 share at the end of 2014. At the end of the years 2015 – 2018 the stock was worth $54.75, $59.13, $56.41, and $60.06 respectfully. You sold the stock at the end of 2019 for $62.00 per share. Calculate your arithmetic mean annual return for the stock during the period in which you owned it. Report your answer to 2 decimal places
Assume you purchased 1,000 shares of Pharma Group, a pharmaceuticals manufacturer, at the market's opening price of $22/share on January 4, 2019, and held the position for the following two years. Further assume you reinvested back into the stock at its closing price on that same day the dividends were paid [Note: you may assume you can hold fractional shares rounded to two decimal places]. You then sold the entire position at the closing price of $23.96 on January 3, 2021. Here are the dividends you received: Dividend Date Dividend per Share Stock's Closing Price May, 1, 2019 $0.299412 $19.49 April 29, 2020 $0.280880 $21.39 What was the holding period return of this position? What was the effective annualized return?
During 2021, Scott Peterson purchased 275 shares of common stock issued by true state manufacturing for $13,800 including commission. Later in the same year, Scott sold the shares for 14,000 after commission. Calculate the following: 1. Profit on this stock transaction 2. Percentage return on investment %
XYZ's stock price and dividend history are as follows: Year Beginning-of-Year Price 2019 2020 2021 2022 $88 108 78 88 Dividend Paid at Year-End $4 An investor buys three shares of XYZ at the beginning of 2019, buys another two shares at the beginning of 2020, sells one share at the beginning of 2021, and sells all four remaining shares at the beginning of 2022 Arithmetic average rate of return Geometric average rate of return Required: a. What are the arithmetic and geometric average time-weighted rates of return for the investor? (Round your year-by-year rates of return and final answers to 2 decimal places. Do not round other calculations.) Dollar-weighted rate of return 4 4 4 % % b. What is the dollar-weighted rate of return? (Hint Carefully prepare a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2019, to January 1, 2022. If your calculator cannot calculate IRR, you will have to use trial and error or a spreadsheet program.) (Round your…
What impact does Target's dividendend annoucement have on it's balance sheet? Target Corporation (NYSE:TGT) recently made a dividend annoucement.The announcement read:The board of directors of Target Coporation has declared a quarterly of 90 cents per common share. The dividend is payable December 10, 2021 to shareholders of record at the close of bussiness November 17, 2021. The 4th quater dividend will be the company's 217th consecutive dividend paid since October 1967 when the company became publicly held. Questions: 1. On which date will Target record a liability for the dividend? 2.On which date will Target pay the cash dividend? 3.On the date of declaration,what will the impact (increase,decrease,noeffect) on Target's:a)assets: b)liabilities; and c)stockholders' equity? 4. On the date of payement, what will be the impact (incease,decrease,no effect)on Target's:a)assets:b)liabilities: and c0 stockholdes" equity?
An investor purchased 500 shares of common stock, $25 par, for $19,250. Subsequently, 100 shares were sold for $35 per share. What is the amount of gain or loss on the sale?
The income statement of Bulldogs Inc. in 2022 reflects a net Income of P2,050,000. The dividend policy of the company is to pay an annual cash dividend of P2 per share to common stock regardless of the market price of the share. If the dividend yield determined for the last day of 2022 is 20%, how much is the fair value of the share? (per share)
You purchased shares of a TSX listed company at the cost of $53.40 per share at the beginning of 2017. Over the next four years, the stock had following stock prices and dividends: Year Year End Price Dividends 2017 $55.70 $1.80 2018 $52.40 $1.90 2019 $50.80 $1.00 2020 $57.90 $1.30 Calculate the following statistics: (1/1000 of one percent without % sign, e.g. 12.671, if a negative percentage, -9.56): 1) 2017 percentage return: 2) 2018 percentage return: 3) 2019 percentage return: 4) 2020 percentage return: 5) Arithmetic mean: 6) Geometric mean: 7) Standard deviation (sample):
1) John made the following investments in Stock A. Calculate his money-weighted return earned over the 5- year period. The cost of equity for Stock A is 10% p.a. Balance from previous year New investment by investor Net balance at beginning of year Investment return for the year Investment gains or (loss) Withdrawal by investor Balance at end of year 1 0 100 100 -50% -50 0 50 2 50 950 1000 35% 350 -350 1000 3 1000 0 1000 27% 270 0 1270 4 1270 230 1500 10% 150 -150 1500 5 1500 0 1500 20% 300 -1800 0
Jane purchased 100 shares of Acme Consolidated 1 year ago at $58.80 per share. During the year, Acme paid a dividend of $1.12 per share. Currently, the stock is selling for $52.33 per share. What is Jane's realized rate of return for the year from the stock? Answer as a percentage, 2 decimal places (e.g., 12.34% as 12.34).

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