Sid bought shares in an office supply company for $50 a share in October 2016. Theshares paid semi-annual dividends of $12 per share and he sold the shares for $65each in April 2017. Find:a) Income Amountb) Income Yieldc) Capital Gain Yieldc) Rate of Return on the InvestmentRound your final answers to two decimals, if needed.Page 10 of 16

Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Sid bought shares in an office supply company for $50 a share in Octol shares paid semi-annual dividends of $12 per share and he sold the sha each in April 2017. Find: a) Income Amount b) Income Yield c) Capital Gain Yield c) Rate of Return on the Investment

Sid bought shares in an office supply company for $50 a share in Octol shares paid semi-annual dividends of $12 per share and he sold the sha each in April 2017. Find: a) Income Amount b) Income Yield c) Capital Gain Yield c) Rate of Return on the Investment

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: lamisa decided to invest her savings worth tk 93242in the stock market in 2011, the value of her…

A: Investment refers to the commitment of funds in order to get some returns. The return on the…

Q: The Ola Nacho Company paid a $1.00 dividend in 2016. If the current dividend in 2019 was $1.20, what…

A: Dividend 2016= 1 Dividend 2019= 1.20 Using Dividend growth model:

Q: The Distance Plus parnership has the following capital balances at the beginning of the current…

A: A ) Calculation of total capital after Sergio invests: = 65000 + 35000 + 50000 + 70000 = 220000…

Q: 1. Determine the tax consequences of the above items 2. Show and submit all calculations 3. Record,…

A: Tax consequences are the financial effects of certain transactions and activities on the tax…

Q: Julia invested a $120,000 inheritance into two different portfolios listed below ($80000 in…

A: Risk is a factor which depends upon the uncertain future results. To reduce or diversify the risk,…

Q: investor purchased a 91 day, $100,000.00 t-bill on its issue date fir $99, 441.89, after holding it…

Q: Question One year ago, Stacey purchased 100 shares of KNF stock for $3,245. Today, she sold those…

A: Capital Gains Calculation:Selling Price per Share: $35.00Number of Shares Sold: 100Total Selling…

Q: Save Answer 1. On July 22, 2015 Peter purchased 30 shares of XYZ Inc. stock at $149.73 per share On…

A: Total number of shares=30Purchase price per share=$149.73Selling price per…

Q: Amy purchased 100 shares of open-end mutual fund at NAV of $42 per share. She received dividend…

A: Initial Price (P0) = $42Final Price (P1) = $40Capital gains (CG) = $4.3Dividend (D) = $2

Q: You purchased 74 shares of Z stock in January 2008 for $40 per share. Each year you recelved a cash…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: You purchased 100 shares of Pepsico stock in January 2012 for $55 per share. Each year you received…

A: The capital gain (or loss) and the total dividends received over the investment period. The formula…

Q: Nacho Mama's Cantina has several investments that pay annual dividends. Mama reported dividend…

A: The cash flow statement is prepared to record the cash flow from various activities during the…

Q: 22) You invested $105,000.00 in Quandary Company, Inc. on January 1, 2015. On December 31 of 2022…

A: Compounded annual growth rate (CAGR) or geometric average rate of return is the rate of return that…

Q: Sunland's Organic Product had the following transactions during 2022: 1. Issued $53000 of common…

A: CASH FLOW STATEMENTCash flow statement provides additional information to user of financial…

Q: John made the following investments in Stock A. Calculate his money-weighted return earned over the…

A: As per the given information: 12345Balance from previous year050100012701500New investment by…

Q: Nancy Cotton bought 400 shares of NeTalk for $15 per share. One year later, Nancy sold the stock for…

A: The total rate of return earned from investment will be reflective of the rate of return through the…

Q: Daniel invested $1,000 in large U.S. stocks at the beginning of 2012. This investment earned 15.30…

A: Return rate in 2012 = 15.30% Return rate in 2013 = 33.20% Return rate in 2014 = 12.25% Return rate…

Q: Investment - Total Rate of Return. Isabela purchased 100 shares of Gorman Inc. at $3.15 and sold…

A: Purchase price = $ 3.15 Commission rate = 1% Investment per share (I) = Purchase price*(1+Commission…

Q: Correct answer

A: Stacey bought 100 shares of a stock (KNF) for $3,245 one year ago. She sold them today for $35.00…

Q: pursue and investment opportunity? Explain. EXERCISE 7-10 Net Present Value Analysis L07-2 Kathy…

A: Net Present Value is the difference between the present value of cash inflows and outflows when…

Q: Megan bought 3 lots shares of stock at a price of $15 a share. She used her 60% margin account to…

A: Given: Particulars Stock price $15 Margin 60% Sale price $17 Transaction fee $10…

Q: Investment - Total Rate of Return. Bailee purchased 475 shares of Millersview Corp. at $22.78 and…

A: The sum of capital yield and the dividend yield is known as the total yield on stocks. The dividend…

Q: Summer bought a share one year ago for RM20.00 per share and sold it today for RM27.50. The share…

A: Realized earning is that rate of return which is earned by the investor from his investment. It…

Q: You purchased 74 shares of Z stock in January 2008 for $40 per share. Each year you received a cash…

A: Purchase Cost (74*$40)$2,960ADD: Brokerage (2,960*3%)$88.80TOTAL PURCHASE COST.$3,048.80

Q: Mr Aleem bough some stocks of urnas Itd for $500 each. At the end of year, he got $5 per share as…

A: The return on Investment is calculated with the help of following formula Return on Investment = D…

Q: Coronado's Organic Produce Market had the following transactions during 2022: 1. Issued $48000 of…

A: Cash flow statement provided information about the cash inflows and cash outflows of the company.…

Q: Julia invested a $120,000 inheritance into two different portfolios listed below ($80000 in…

A: Portfolio is a bunch of various assets or investments. To reduce or manage the risk, investors…

Q: Compute the total and annual return on the following investment. Five years after paying $2900 for…

A: Returns refer to the income earned through the investment by means of capital appreciation or the…

Q: On January 1, 2016. Charley Dow bought 1,000 shares of stock at $28 per share. On December 31, 2018,…

A: The rate of return refers to the profits that the investment provides to the investor. It is used to…

Q: An investor purchased 50 shares of stock in a company for $600. One year later, the investor sold…

A: purchase price = $600 selling price = $13 shares = 50 total selling price = $13 x 50 = $650

Concept explainers

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.

Question

100%

Sid bought shares in an office supply company for $50 a share in October 2016. The
shares paid semi-annual dividends of $12 per share and he sold the shares for $65
each in April 2017. Find:
a) Income Amount
b) Income Yield
c) Capital Gain Yield
c) Rate of Return on the Investment
Round your final answers to two decimals, if needed.
Page 10 of 16

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Gareth owns 1 share of stock A and 1 share of stock B. In 1 year from today, the total value of his holdings is expected to be 119.42 dollars. Stock A is currently priced at 47.13 dollars, has an expected return of 12.58 percent, and is expected to pay a dividend of 6.54 dollars in 1 year from today. Stock B is currently priced at 74.88 dollars and is expected to pay a dividend of 5.93 dollars in 1 year from today. What is the expected return for stock B? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.
For four years, Marty Campbell invested $6,000 each year in Harley-Davidson. The stock was selling for $78 in 2017, $66 in 2018, $53 in 2019, and $65 in 2020. a. What is Marty's total investment in Harley-Davidson? Total investment b. After four years, how many shares does Marty own? (Round your intermediate calculations and final answer to nearest whole number.) Number of shares c. What is the average cost per share of Marty's investment? (Use the rounded number of shares computed in part b. Round your answer to 2 decimal places.) Average cost per share
Joy wants to invest his funds in shares in one of the two existing manufacturing companies. The following information about the dividend paid during the seven years of the Year Brown Company Avel Company 2000 500 300 2001 600 557 2002 665 615 2003 675 640 2004 785 790 2005 800 815 2006 815 795 If you as an investment consultant who is conducting an analysis of the two companies, with Using trend analysis, which company would you recommend to Joy for his investment in 2010? (work with complete procedure)
An engineer invests $50,000 in bonds paying dividends of $1,000 per year for 10 years. At 10 years, the engineer sells the bonds for $70,000. Calculate the rate of return on investment using net future worth analysis.
Jambo owns a stock that earned 18 percent on his investment this year. Which one of the following best describes the 18 percent rate? Select one: a. Actual return b. Expected return c. Required rate of return
Holding period return
A) Sam bought 3000 units of shares from Company A at a price of RM2.00 per unit. The company pays a 5% dividend to shareholders at the end of the year. Sam sold all the shares and made a profit of RMO.50 per share. Calculate the total return on investment.
You purchased three contracts of "XYZ December 4 2015 84.00 Call" at $5.50 per options and exercised it when the underlying stock price was $92. What was your profit and return on the investment, excluding the commisions.
Abigail bought 28 shares of stock at $30.00 per share. She received dividends of $49.50 during the year. At the end of the year, her stock was valued at $43.50 per share. What was her ROI (Return on Investment)?
1. Yvette took out a term loan with an annual interest rate of 4.61% to pay for a car. The beginning balance for a particular month was $6,596.82 and the balance after that month's payment was $6,143.11. What was Yvette's monthly payment? Round your answer to the nearest penny. 2. Assuming there were no buying/selling fees, what would be the total capital gain if 133 shares of DCBA stock were purchased for $32.14 per share and all 133 shares were sold for $41.76 per share six months later? Round your answer to the nearest penny.
Year beginning of year price Dividend paid 2015 125 2 2016 141 2 2017 120 2 2018 125 2 An investor buys six shares of this stock at the beginning of 2015, buys another beginning of 2016 sells one share at the beginning o 2017 sells all remaining share on 2018What are the arithmetic and geometric average weighted rate of return for the investor? What is the dollar-weighted rate of return?