An investor bought 80 shares of stock at a cost of $11 per share. He held the stock for 14 years and then sold it for a total of $4,400. For the first two years, he received no dividends. For each of the nextsix years, he received total dividends of $60 per year. For the remaining penod, he received total dividends of $120 per year. What rate of return did he make on the investment?The rate of return made on the investment is Round to two decimal places)amo

When money is invested in the stock market the return can be in the form of dividend and increase in…

n investor bought 80 shares of stock at a cost of $11 per share. He held the stock for 14 years and then sold it for a total of $4,400. For the first two years, he recen six years, he received total dividends of $00 per year. For the remaining period, he received total dividends of $120 per year. What rate of retum did he make on the The rate of return made on the investment is sound to two decimal places)

n investor bought 80 shares of stock at a cost of $11 per share. He held the stock for 14 years and then sold it for a total of $4,400. For the first two years, he recen six years, he received total dividends of $00 per year. For the remaining period, he received total dividends of $120 per year. What rate of retum did he make on the The rate of return made on the investment is sound 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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Today, Andrew sold 3,600 shares of Colts stock for $26.60 per share. Andrew paid $101,124 for the 3,600 shares one year ago. What is the total return on this investment if the dividend yield is 1.90%?
Antonia invests $2,000 in the stock market, and the value of her stock grows at an 8% rate for the next three years. What is the value of her investment after three years? $2,080 $2,480 $2,519 $2,640 $2,780
Suppose you have $10,000 in cash to invest. You decide to sell short $5000 worth of Earlham stock and invest the proceeds from your short sale, plus your $10,000 into one-year U.S. Treasury bills earning 5%. At the end of the year, you decide to liquidate your portfolio. Earlham Industries was priced at $40 per share at the beginning of the year. At the end of the year, Earlham Industries paid a dividend of $1 per share and the share price was $50. The return on your portfolio is closest to: 12.25% -6.25% -2.5% 5%
Becky Martinez owns stock in GBX Corporation. The GBX stock has a current market value of $70 a share. If Becky receives $1.40 a year in dividends, what is the dividend yield?
An investor puts up $16,000 but borrows an equal amount of money from his broker to double the amount invested to $32,000. The broker charges 8% on the loan. The stock was originally purchased at $40 per share, and in 1 year the investor sells the stock for $45. The investor's rate of return was Multiple Choice O O 16.50% 8.50% 17.00% 4.50%
James Burton purchased a stock for 545 one year ago. The stock is now worth $65. During the year, the stock paid a dividend of $2.50. What is the total return to James from owning the stock? (Round your answer to the nearest whole percent.) none of the answers is correct. 5% 50% 35% 44%
Carl owns investment A and 1 share of stock B. The total value of his holdings is $531.73. Stock B has an annual expected return of 15.78 percent. The stock's next annual dividend is expected to be $12.19 in 1 year and all subsequent dividends are expected to grow annually by 5.25 percent forever. Investment A has an expected return of 7.17 percent and is expected to pay X per year for a finite number of years such that its first annual payment is expected later today and its last annual payment is expected in 10 years from today. What is X, the annual cash flow made by investment A? O $-13.87 (plus or minus 10 cents) $52.20 (plus or minus 10 cents) $60.85 (plus or minus 10 cents) $51.91 (plus or minus 10 cents) the answer cannot be obtained based on the given information
Bob has been investing $4,250 in stock at the end of every year for the past 15 years. If the account is currently worth $130,400, what was his annual return on this investment? Multiple Choice: 9.08% 10.62% 10.92% 8.82% 9.56%
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