Suppose you invest $20000 by purchasing 300 shares of ABC Corporation at $20 per share, 200 shares of DEF Corporation at $30 per share, and 100 shares of GHI Corporation at $80 per share. Suppose over the next year ABC Corporation has a return of -10% (negative 10%), DEF Corporation has a return of 15%, and GHI Corporation has a return of 12%. If you don’t buy or sell shares over the year, Calculate return on your portfolio over the year is closest to?

Q: You have decided to purchase shares of GHC but need an expected 14 percent rate of return to…

A: Dividend per share = $4.80Required rate of return = 14% = 0.14

Q: You are told by your investment advisor that Laduma Co. is expected to earn R5 per share next year,…

A: Formulas:

Q: You want to take a long position on a stock. It costs $2,500 for 1,000 shares, so you deposit $1,250…

A: Computation:

Q: Beta Corporation is expected to pay the following dividends per share over the next two years,…

A: Most amount willing to pay is present value of all future cash flows discounted at required rate of…

Q: You purchased stock in Cough For Dollars (CFD), a disposable mask producer. You will hold this…

A: Expected return = 0.2*-30% + 0.5*5% + 0.3*20% = 2.50%

Q: rate

A: Formula to calculate rate of return on shares is: Ending value of investment - Beginning value of…

Q: You are thinking of purchasing a cumulative, convertible preferred share with a stated dividend of…

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

Q: Suppose you own a clothing boutique to pass the time in your retirement. This business currently has…

A: In the first scenario, the clothes store does not have any debt, which results in a clear capital…

Q: You purchase 1,000 shares of WMT (Walmart) for $143 per share. A year later, you sell the stock for…

A: ParticularsValuesNumber of shares purchased1000Purchase Price per share$143Selling price per…

Q: Suppose that you opened a margin account (margin requirement = 60%) with your brokerage firm.…

A: STEP 1 The gain or loss of an investment over a given time period, represented as a percentage of…

Q: Suppose that TSLA’s current share price is $20. You buy 1,000 shares using $15,000 of your own…

A: Rate of return is percentage amount of earning after holding the shares for one year including cost…

Q: Melissa Popp is thinking about buying some shares of Education, Inc., at $50 per share. She expects…

A: Given the following information: Share price of Education Inc: $50 per share Expected price of the…

Q: You are bullish on Zhu Que, Incorporated. You invest $10,000 of your own money and borrow $10,000…

A: The investor takes a leveraged buy position in a stock. We have to find the (a) number of shares the…

Q: You are considering investing $800 in Higgs B. Technology Inc. You can buy common stock at $25.00…

A: A convertible bond comes with an option for the investor which allows him to convert the bonds into…

Q: Max just paid an annual dividend of $3.75. The company has y of increasing the dividend by 2.5…

A: DDM is dividend discount model and value of stock can be calculated based on present value of…

Q: you are analyzing Citi as a potential stock investment. You're expecting them to pay a dividend of…

A: Current Price of Stock is that maximum amount which can paid by the investor for purchasing the…

Q: n equity investor is considering purchasing a company which has $1,400 of EBITDA for a 6x multiple.…

A: Equity return will the difference in investment value initially and value at end (after 3 years).

Q: You are told by your investment advisor that Laduma Co. is expected to earn R5 per share next year,…

A: Computation as follows: Hence, the value of share is R 47.33. The present market price of share is…

Q: You Invest $3000 by buying 100 shares of Driss Inc at a price of $30 per share. One year from now,…

A: IRR is the break-even rate of return at which the present value of cash flow is equal to the initial…

Q: Suppose you sell short 200 shares of BP ADR currently selling at $40 per share. You give your broker…

A: In short selling one does not hold stock but promises to buy at lower prices later and this is…

Q: Assume that you are in a perfect Modigliani-Miller world (no taxes, no bankruptcy costs, etc.). A…

A: Dividends are paid out of net income and a dividend is a sharing of income with shareholders and it…

Q: Suppose you have $1 short $5000 worth of Kinston stock and invest the proceeds from your short sale,…

A: Solution:- Return of the portfolio means the return earned on the total money invested. So, return…

Q: You are considering purchasing stock in Canyon Echo. You feel the company will increase its dividend…

A: Recent dividend (D0) = $3.53Constant growth rate (g) = 4.2% or 0.042Expected Dividend (D1) = D0 × (1…

Q: You own 2,200 shares of stock in Avondale Corporation. You will receive a dividend of $1.50 per…

A: Total dividend in year 1= Number of shares * Dividend per share.2,200∗$1.50=$3,300Dividend…

Q: You are evaluating the purchase of Bell, Inc. common stock that just paid a dividend of $4.60. You…

A: Dividend paid( D0)= $4.60Growth rate= 10%Required return= 13%Estimated stock price at the end of 4…

Q: You are bullish on XYZ stock. The current market price is $100 per share, and you have $10,000 of…

A: Margin call refers to the amount which is deficit to maintain the maintenance margin account.

Q: You are considering purchasing stock in Canyon Echo. You feel the company will increase its dividend…

A: Dividevds are conveyances of a company's benefits to its shareholders, paid out frequently,…

Q: You are evaluating the purchase of Bell, Inc. common stock that just paid a dividend of $4.60. You…

A: Here, Recent Annual Dividend D0 $        4.60Growth rate for first four years10%Value of Share at…

Q: A young start-up company will not pay dividends on its stock over the next 9 years. The company will…

A: Hence, value of share at year 10 beginning is $112.5 which is determined by dividing the dividend of…

Q: You are bullish on Telecom stock. The current market price is $110 per share, and you have $22,000…

A: Current Market Price = $110Owned Funds = $22,000Borrowed Funds = $22.000Total Initial Investment =…