Alexander Railroads has a dividend reinvestment program for shareholders. From2013 to 2017, the company had the following share prices and dividends.YearShare price after dividend dividend per share2013$48$2.502014$50.75$2.752015$55.15$3.002016$60.50$3.502017$61.25$4.00If you started with 100 shares of stock at $48 per share and participated fully inthe DRIP, how many shares of stock would you have at the end of 2017? Round upto the nearest three decimal places

An automated reinvestment plan (ARP) is a strategy for investing big profits or stocks…

Answered: If you started with 100 shares of stock…

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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You purchase 100 shares of stock for $40 a share. The stock pays a $2 per share dividend at year-end. a. What is the rate of return on your investment if the end-of-year stock price is (i) $38; (ii) $40; (iii) $44? (Leave no cells blank - be certain to enter "0" wherever required. Enter your answers as a whole percent.) Stock Price Rate of Return 38 40 % 44 %
A stock will pay a dividend of $3 and is expected to be worth $54.5 in 1 year. If the stock is currently selling for $55, what is the return? Answer as a percent. Answer:
XYZ stock price and dividend history are as follows: Beginning-of-Year Dividend Paid at Year 2018 2019 Price $ 140 159 132 137 2020 2021 Year-End $ 4 4 4 4 An investor buys five shares of XYZ at the beginning of 2018, buys another three shares at the beginning of 2019, sells one share at the beginning of 2020, and sells all seven remaining shares at the beginning of 2021. Required: a. What are the arithmetic and geometric average time-weighted rates of return for the investor? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Arithmetic time-weighted average returns Geometric time-weighted average returns % % b-1. Prepare a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2018, to January 1, 2021. (Negative amounts should be indicated by a minus sign.) Date Cash Flow 01/01/2018 01/01/2019 01/01/2020 01/01/2021
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If you started with 100 shares of stock at $48 per share and participated fully in the DRIP, how many shares of stock would you have at the end of 2017? Round up to the nearest three decimal places