On January 1, you bought 100 shares of ABD stock for $19/share with funds that you borrowed atan annual rate of 8%. The stock paid dividends per share of $1.50 at the end of the first year, andof $2.20 at the end of year two. What rate of return did you earn if you sold the stock for $21/shareat the end of year two. Group of answer choices 14.52 % 12.52 9.99 13.33 15.12. Flag question:Question 22The NPV of the investment was, Group of answer choices $5.70 2.28 4.28 3.28 1.68.

volume_upRate of Return on InvestmentGiven:Purchase price per share: $19Number of shares:…

Answered: On January 1, you bought 100 shares of…

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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Six months ago, you bought a stock for $19.00 a share. You sold it today for $20.75, after receiving a dividend of $1.65 earlier in the day. What was your effective annual rate of return? Options 37.04% 38.02% 38.99% 39.97% 40.94%
You purchase 60 shares for $60 a share ($3,600), and after a year the price falls to $55. Calculate the percentage return on your investment if you bought the stock on margin and the margin requirement was (ignore commissions, dividends, and interest expense): 25 percent. Use a minus sign to enter the amount as a negative value. Round your answer to one decimal place. % 65 percent. Use a minus sign to enter the amount as a negative value. Round your answer to one decimal place. % 75 percent. Use a minus sign to enter the amount as a negative value. Round your answer to one decimal place. %
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