Holding period and annual (investment) returns. Bohenick Classic Automobiles restores and rebuilds old classic cars. Today at auction, the car sold for $69,300.00. What are the holding period retum and the annual return on this investment? The company purchased and restored a classic 1957 Thunderbird convertible 7 years ago for $7,700.00 What is the holding period return of the car? 800 % (Round to two decimal places.) What is the simple annual return on the car? 114.29 % (Round to two decimal places.) What is the effective annual return (EAR) on the car? % (Round to two decimal places.)

Holding period and annual (investment) returns. Bohenick Classic Automobiles restores and rebuilds old classic cars. Today at auction, the car sold for $69,300.00. What are the holding period retum and the annual return on this investment? The company purchased and restored a classic 1957 Thunderbird convertible 7 years ago for $7,700.00 What is the holding period return of the car? 800 % (Round to two decimal places.) What is the simple annual return on the car? 114.29 % (Round to two decimal places.) What is the effective annual return (EAR) on the car? % (Round to two decimal places.)

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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Question Help ▼ Holding period and annual (investment) returns. Bohenick Classic Automobiles restores and rebuilds old classic cars. Today at auction, the car sold for $69,300.00. What are the holding period return and the annual return on this investment? The company purchased and restored a classic 1957 Thunderbird convertible 7 years ago for $7,700.00. What is the holding period return of the car? 800 % (Round to two decimal places.) What is the simple annual return on the car? % Round to two decimal places)
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Assume you paid cash for a beach house in Florida a while back and that you are now wanting to sell it. You have two offers for the house as follows: 1. $500,000 paid immediately (spot market sale) 2. $520,000 paid 1 year from now (Forward sale) Here is a list of the annual cost/income considerations: ● Property tax: $5,000 Insurance: $3,000 HOA dues: $4,000 Maintenance: $3,000 Rental Income: $35,000 What is the fair value forward price from your perspective? Opportunity cost of not receiving the 500K today is the money-market rate of 5% = $25,000 for 1 year ● $535,000 $540,000 $505,000 $495,000 $520,000
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