You Invest $3000 by buying 100 shares of Driss Inc at a price of $30 per share. One year from now, Driss pays you a dividend of 40 cents per share. One year later (i.e. two years from now), you get another dividend of 40 cents per share and you immediately sell your shares for $32 each. What return (IRR) did you get on your investment? (Do not round intermediate calculations. Report your result as a percentage. Round the final answers to 2 decimal places. Be careful - Excel's default is to report whole precentage points. Omit the % sign in your response. For example if your answer is 3.21%, just enter 3.21)

You Invest $3000 by buying 100 shares of Driss Inc at a price of $30 per share. One year from now, Driss pays you a dividend of 40 cents per share. One year later (i.e. two years from now), you get another dividend of 40 cents per share and you immediately sell your shares for $32 each. What return (IRR) did you get on your investment? (Do not round intermediate calculations. Report your result as a percentage. Round the final answers to 2 decimal places. Be careful - Excel's default is to report whole precentage points. Omit the % sign in your response. For example if your answer is 3.21%, just enter 3.21)

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 2FPE: An investor is thinking about buying some shares of Health Diagnostics, Inc., at $75 a share. She...

See similar textbooks

Similar questions

Jitu
You purchase 1,000 shares of WMT (Walmart) for $143 per share. A year later, you sell the stock for $166 per share. You receive a dividend of $2.27 a share. a.What is your total dollar return? b. What are your dividend yield, capital gain yield, and total percentage return? Note: don't use chat gpt.
Suppose you purchase one share of the stock of Cereal Correlation Company at the beginning of year 1 for $35. At the end of year 1, you receive a $3 dividend, and buy one more share for $44. At the end of year 2, you receive total dividends of $6 (i.e., $3 for each share), and sell the shares for $50 each. The time-weighted return on your investment is? When performing the calculations, do not round any inputs or interim results until you get the final answer. Round your final answer to four places after the decimal point. The dollar-weighted return on your investment is? When performing the calculations, do not round any inputs or interim results until you get the final answer. Round your final answer to four places after the decimal point.
K Compute the total and annual returns on the described investment. Six years after buying 200 shares of XYZ stock for $40 per share, you sell the stock for $12,100. The total return is %. (Do not round until the final answer. Then round to one decimal place as needed.) The annual return is%. (Do not round until the final answer. Then round to one decimal place as needed.)
you are considering the purchase of zee company stock. you anticipate that the company will pay dividends of $3.50 per share next year and $4.00 per the following year. you believe that you can sale the stock for $20.00 per share two years from now. if your required rate is 10 percent, what is the maximum price that you would pay for a share of Zee company stock? Please don't provide answer in image format thank you
Suppose you purchase one share of the stock of Red Devil Corporation at the beginning of year 1 for $43.00 At the end of year 1, you receive a dividend of $2, and buy one more share for $47.00. At the end of year 2, you receive total dividends of $4 (e., $2 for each share), and sell the shares for $55.00 each. What is the time-weighted return on your investment? (Round your answer to 2 decimal places. Do not round intermediate calculations.) Return 1%
How much would you be prepared to pay for a share in 3 years’ time that pays a $3.51 dividend each year constantly ? Assume the required rate of return is expected to remain constant at 5.17 per cent per year. Round your final answer to 2 decimal places. E.g. if the final value is $12345.8342, please type 12345.83 in the answer box (do not type the dollar sign).
You buy 100 shares of stock for $50 per share. The stock pays a dividend of $2 per share per year. That dividend is not reinvested. After 5 years, if you sell your shares for $50 per share, what is the total percentage return that you earned? (Round your answer to the nearest whole number, if necessary)
Please give me answer accounting
You buy 100 shares of stock for $50 per share. The stock pays a dividend of $2 per share per year. (Round your answers to the nearest whole number, if necessary) After 1 year, if you sell the shares for $50 per share, what is the percentage return that you earned? After 1 year, if you sell your shares for $60 per share, what is the percentage return that you earned?
A speculator sells a stock short for $71 a share. The company pays a $2.50 annual cash dividend.After a year has passed, the seller covers the short position at $63. If the margin requirement is55 percent, what is the percentage return earned on the investment? Redo the calculations, assuming the price of the stock is $78 when the investor closes theposition. Based on your calculations to both scenarios, what generalization can be inferred?
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.