You purchase 100 shares of a stock at $50 per share and sell themone year later for $60 per share. During the year, you also receivedividends of $2 per share. What is your total return on theinvestment?A. 12%B. 20%C. 24%D. 32%

Explanation of Initial Investment:The initial investment is the total amount of money spent to…

Answered: You purchase 100 shares of a stock at…

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter7: Stocks (equity) - Characterstics And Valuation

Section: Chapter Questions

Problem 1PROB

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You buy a share for $15.21 and sell it exactly one year later for $17.38. Your total return on the investment was 24.46%. What was the value of dividends paid on the share during the year? Question 5 Answer a. $1.55 b. $2.00 c. $ 1.76 d. $2.19
You purchased a share of stock for Rs 250. One year later you received Rs 5 as dividend and sold the share for Rs 320. Holding period return would be a. 12 percent b. 21 percent c. 30 percent d. 54 percent
Suppose you bought 150 shares of stock at an initial price of $47 per share. The stock paid a dividend of $.46 per share during the following year, and the share price at the end of the year was $50. a.Capital Gains Yield b.Divadend Yield c.Total rate of return
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4. At the beginning of the year, you purchase a share of stock for $50. Over the year the dividend paid on the stock were $2.75 per share. a. Calculate the return if the price of the stock at the end of the year is $60. b. Calculate the return if the price of the stock at the end of the year is $40.
You bought a stock at $22 last year. After one year, you received a dividend of $0.61 and then sold the stock for $30. What was your rate of return on this investment? a. 36.36% b. 43.05% c. 39.14% d. 26.12% e. 28.70%
At the beginning of the year, you purchased a stock for $35. Over the year the dividends paid on the stock $2.75 per share. a. Calculate the return if the price of the stock at the end of the year is $30 b. Calculate the return if the price of the stock at the end of the year is $40
Calculating Return Components An investor purchases one share of stock for $50. After one year, they sell the share for $55. During the year, they receive $7 in dividends. a) What was the dividend yield, in percentage terms? b) What was the capital gain from price appreciation on the stock, in percentage terms? c) What was the total return in dollars? What was the total return, in percentage terms?
You invest in Sandhill Corp. stock at a price of $63.50 per share. At the end of one year, you sell your shares for $71.50 per share and you received a $1.60 per share dividend during the year. What is your return on investment for this period? 15.12% 13.76% 10.08% 12.16%
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 purchase 100 shares of stock for $50 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) $47; (ii) $50; (iii) $53? B. What is your real (inflation adjusted) rate of return if the inflation rate is 5%?
An investor purchased 50 shares of stock in a company for $600. One year later, the investor sold all 50 shares for $13 per share. What is the investor's rate of return? А. -8.3% В. 8.3% C. 7.7% D. -7.7%

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You purchase 100 shares of a stock at $50 per share and sell them one year later for $60 per share. During the year, you also receive dividends of $2 per share. What is your total return on the investment? A. 12% B. 20% C. 24% D. 32%