You bought a share of Pacebook stock for $20 at the beginning of the year. Pacebook stock paid dividend of $1.50 total this year. Now, it is the end of the year, and you decided to sell the stock at the current price of $23. If you ignore any trading costs and taxes, what is your simple holding period return on the stock? answer is 22.5%
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You bought a share of Pacebook stock for $20 at the beginning of the year. Pacebook stock paid dividend of $1.50 total this year. Now, it is the end of the year, and you decided to sell the stock at the current price of $23. If you ignore any trading costs and taxes, what is your simple holding period return on the stock? answer is 22.5%
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- You originally purchased Hershey stock at $161. It paid a dividend of $3.00 in the last year. Currently, the stock is selling for $156 per share. What is your total return if you sell the stock today?You purchased a stock at the end of last year at a price of $98. At the end of this year, the stock pays a dividend of $2.10 and you sell the stock for $107. What is your return for the year? Now suppose that dividends are taxed at 15 percent and long-term capital gains (over 11 months) are taxed at 30 percent. What is your aftertax return for the year? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Pretax return 11.33 % Aftertax return %the stock of midway cement is currently selling for $20 a share and is expected to pay a $1.5 divident at the end of the year. if you bought the stock now and sold it for 24$ after reciving the divident, what rate of return would you earn?
- You purchase 100 shares of stock for $47 a share. The stock pays a $3 per share dividend at year - end. What is the rate of return on your investment for these end-of-year stock prices? What is your real (inflation - adjusted) rate of return? Assume an inflation rate of 4%. (Round your answers to 2 decimal places. Use the minus sign for negative numbers if it is necessary.) a) End of year stock price = $43 Real rate of return = ? Real rate= ? b) End of year stock price = $47 Real rate of return= ? Real rate= ? c) End of year stock price = $50 Real rate of return= ? Real rate = ?If you originally bought a share of stock for $27, and in one year it paid a dividend of $4 and now costs $33. You sell the stock today for $33, what is your percentage return? (answer in percent, but without the percent sign, e.g. "8.25" is 8.25%)You purchased a share of stock in The Hephaestus Company last year at $40, which paid you a $2 dividend during the year. What is your holding period return if: a. You sell the stock for $44. b. You sell the stock for $50. c. You sell the stock for $35
- You buy a stock for $10. During the year, the stock paid a $1 cash dividend. At the end of the year, you sell the stock for a total of $11 total. What is the “total return” on your investment? (remember, total return is more than just capital gains.)You purchase 100 shares of stock for $25 a share. The stock pays a $3 per share dividend at year-end. a. What is the rate of return on your investment if the end-of-year stock price is (i) $22; (ii) $25; (iii) $26? b. What is your real (inflation-adjusted) rate of return if the inflation rate is 2%?You buy Disney stock at $80/ share. It’s worth $85 at the end of the first year and $90 at the end of the second year. You decide to sell it at $90. No dividend is paid, what are the two one-year returns (expressed as a percent)? What is the annualized return or geometric average (it’s a percent) for the two years?
- You purchase 100 shares of stock for $40 a share. The stock pays a $2 per share dividend at year-end. What is the rate of return on your investment if the year-end stock prices turn out to be $38, $40, and $42? What is your real (inflation-adjusted) rate of return in each case, assuming an inflation rate of 3%? Show all of your working. Do no use Excel.Suppose Acap Corporation will pay a dividend of $2.83 per share at the end of this year and $3.07 per share next year. You expect Acap's stock price to be $52.34 in two years. Assume that Acap's equity cost of capital is 10.7%. a. What price would you be willing to pay for a share of Acap stock today if you planned to hold the stock for two years? b. Suppose, instead, you plan to hold the stock for one year. For what price would you expect to be able to sell a share of Acap stock in one year? c. Given your answer in part b, what price would you be willing to pay for a share of Acap stock today if you planned to hold the stock for one year? How does this price compare to your answer in part a? a. If you planned to hold the stock for two years, the price you would pay for a share of Acap stock today is $ (Round to the nearest cent.)You purchase 115 shares of stock for $53 a share. The stock pays a $7 per share dividend at year- end. What is the rate of return on your investment for these end-of-year stock prices? What is your real (inflation-adjusted) rate of return? Assume an inflation rate of 5%. (Round your answers to 2 decimal places. Use the minus sign for negative numbers If it is necessary.) a. End-of-year stock price = $48 Rate of return Real rate b. End-of-year stock price = $53 Rate of return Real rate c. End-of-year stock price = $60 Rate of return Real rate
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