If you invest $3,600 in Dell Stock and 7 years later the stock is worth $10,300, what has been your Total Holding Period Percentage Return? A) 650% B) 186% C) 1.86% D) 6.5%
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- If you invest $40,000 in a stock whose value grows at 2% per year, your investment is nearest what value after 5 years? (a) $40,800 (b) $43,296 (c) $44,164 (d) $64,420Best Corporation is expected to pay $.60 next year and $1.10 the following year and $1.25 each year thereafter. If the required return is .14, what is the priice of the stock? $7.40 $2.95 $8.24 $2.22If you purchase a stock today for $100 and plan to sell in 7 years at an average return of 7.6% what is the sale value?
- Compute the price of a share of stock that pays a 2 per year dividend and that you expect to be able to sell in one year for 25, assuming you require a 10% return.What is the current value of Frocks & Socks Clothiers, Inc.to an investor who has a required rate of return of 12 percent? The current dividend is $1.00 and the dividends are expected to grow 8 percent per year for 3 years. At the end of 3 years the investor expects to sell the security for $76. A)$79.51 B)$56.90 C)$51.13 D)$76.00The current price of a stock is $55.04. If dividends areexpected to be $1 per share for the next six years, andthe required return is 8%, what should the price of thestock be in six years when you plan to sell it? If thedividend and required return remain the same, and thestock price is expected to increase by $1 six years fromnow, does the current stock price also increase by $1?Why or why not?
- You just purchased a share of SPCC for $101. You expect to receive a dividend of $7 in one year. If you expect the price after the dividend is paid to be $113, what total return will you have earned over the year? What was your dividend yield? Your capital gain rate?By investing in a particular stock, a person can make a profit in one year of $3900 with probability 0.4 or take a loss of $800 with probability 0.6. What is this person's expected gain?Stock price of General Motors Company is 49.90 on July 17. If you buy 100 shares today and hold them for one year what is your potential capital gain (loss) ? Show calculations. How much dividends will you be recieving for holding the stocks for one year? Show calculations. Assuming that you can value the company using the DDM (Gordon Model) and that your reauired rate of return is 10% how much would you be willing to pay for the stock today? Show calculations. What was the lowest price and the highest price the stock traded in the last year?
- What is the value of Company X stock if the dividend next year will be $3 and is expected to grow at a rate of 4% forever if your required return is 9.08%You expect a company to pay a dividend of 2.50 next year and 3.50 a share for the following 2 years. At that point, you expect that the dividend will increase by 4% every year. If your required return is 8%, what would you pay for the stock today? USE EXCELA stock paying $5 in annual dividends sells now for $80 and has an expected return of 14%. What might investors expect to pay for the stock one year from now? O a. $91.20 O b. $82.20 O c. $86.20 O d. $87.20

