Financial accounting Last year, you purchased a stock at a price of $60 a share.Over the course of the year, you received $1.60 individends and inflation averaged 2.1%. Today, you soldyour shares for $64.50 a share.What is your approximate real rate of return on thisinvestment?a. 9.6%b. 8.1%c. 12.3%d. 10.2%e. 5.4%

Step 1: Calculate the nominal rate of returnDividend yield = $1.60 (dividend) / $60 (initial price)…

Answered: Last year, you purchased a stock at a…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter8: Basic Stock Valuation

Section: Chapter Questions

Problem 2P

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Today, you sold your Riot Blockchain, Inc stock (ticker: RIOT) for $54.5/share. Last year, you paid $51.5/share for that stock. During the year, RIOT paid you $2/share in dividends. If inflation averaged 2.8% during the year, your approximate real rate of return on the RIOT investment is: a. 12.5 percent b. 9.7 percent c. 12.2 percent d. 3.5 percent e. 6.9 percent
You presently own stock that you purchased one year ago. Your return on the stock for the past year was 20%. You calculate your real return on investment was 12.15%. The rate of inflation must have been Select one: О a.5% O b. 7% O c.3% O d.11% O e. 9%
You purchased a stock at a price of $24. A year later the stock is worth $29, and during the year it paid $1.0 in dividends. What was the rate of return you earned on this investment? Show your answer in percent (but without the percent sign), and to one decimal place. E.g. 4.67% should be inputted as 4.7
2. Answer both questions: a. You purchase 100 shares of stock for $40 a share. The stock pays a $2 per share dividend at year-end. What is the rate of return on your investment if the year-end stock prices turn out to be $38, $40, and $42? What is your real (inflation-adjusted) rate of return in each case, assuming an inflation rate of 3%? b. Consider the following information on the returns on stock and bond investment. Scenario Profitability Stocks Bonds Recession .2 -5% +14% Normal Economy .6 +15% +8% Boom .2 +25% +4% i) Calculate the expected rate of return and standard deviation in each investment. ii) Do your results support or contradict the historical record on the relationship between risk and return in the financial market in both Canada and the United States? iii) Which investment would you prefer? Explain your answer.
You bought a stock at $22 last year. After one year, you received a dividend of $0.61 and then sold the stock for $30. What was your rate of return on this investment? a. 36.36% b. 43.05% c. 39.14% d. 26.12% e. 28.70%
One year ago, you bought a stock for $50.39 a share. You received a dividend of $2.97 per share last month and sold the stock today for $49.58 a share. What is the capital gains yield (in percent) on this investment? Correct pls.
Find the real rate of return for the Costco stock you purchased for $166.80 five years ago, that has a current price of $382.23, and dividends of $7/per share. The inflation rate is 9.44%.
One year ago, you bought a stock for $57.04 a share. You received a dividend of $2.61 per share last month and sold the stock today for $49.23 a share. What is the capital gains yield (in percent) on this investment? Answer to two decimals
Suppose you bought a stock for $22.7 per share and then sold it for $14.7 per share. In the mean time, you received dividends of $1 per share. What was your total return from this investment? Answer in percent rounded to one decimal place.
Suppose that you purchased a single stock five years ago for $1.22. The stock is now valued at $5.10 today. What has been the average annual percent growth in the price since you purchased it? Report your answer without the percentage symbol (for example, 75.2% would be 75.2)
Need answer the general accounting question not use ai
a. If your required rate of return is 7.60percent, what is the value of the stock for you? b. Should you make the investment

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