ula or a financial calculator to ra • not round intermediate cale for $80 a share (the stock pays 50 (current income on this secu ote has a $1,000 par value and
ula or a financial calculator to ra • not round intermediate cale for $80 a share (the stock pays 50 (current income on this secu ote has a $1,000 par value and
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter12: Investing In Stocks And Bonds
Section: Chapter Questions
Problem 1FPE: What makes for a good investment? Use the approximate yield formula or a financial calculator to...
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![***
1. Ch12 Financial Planning Exercise 1
eBook
Chapter 12
Financial Planning Exercise 1
Ranking investments by expected returns
What makes for a good investment? Use the approximate yield formula or a financial calculator to rank the following investments according to their
expected returns. Round the answers to two decimal places. Do not round intermediate calculations.
a. Buy a stock for $45 a share, hold it for 3 years, then sell it for $80 a share (the stock pays annual dividends of $3 a share).
d
b. Buy a security for $20, hold it for 3 years, then sell it for $60 (current income on this security is zero). Do not round intermediate
calculations.
%
c. Buy a 1-year, 12 percent note for $940 (assume that the note has a $1,000 par value and that it will be held to maturity). Do not round
intermediate calculations.
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Transcribed Image Text:***
1. Ch12 Financial Planning Exercise 1
eBook
Chapter 12
Financial Planning Exercise 1
Ranking investments by expected returns
What makes for a good investment? Use the approximate yield formula or a financial calculator to rank the following investments according to their
expected returns. Round the answers to two decimal places. Do not round intermediate calculations.
a. Buy a stock for $45 a share, hold it for 3 years, then sell it for $80 a share (the stock pays annual dividends of $3 a share).
d
b. Buy a security for $20, hold it for 3 years, then sell it for $60 (current income on this security is zero). Do not round intermediate
calculations.
%
c. Buy a 1-year, 12 percent note for $940 (assume that the note has a $1,000 par value and that it will be held to maturity). Do not round
intermediate calculations.
Grade it Now
Save & Continue
Continue without saving
NOV
14
O Ctv A W
MacBook Air
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