The rate of return on an investment is the profit or loss on yields of investment which are gained by an investor. Yield = [ ( No . of shares × Current price per share ) − ( No . of shares × Original price per share ) ] + ( No . of shares × Dividend per share ) ( No . of shares × Original price per share ) The number of shares to be purchased is 40 at $10 each. The current price per share is $9 and the dividend payments per share is $0.50.

Question

Want to see the full answer?

Answer 1

Question

Chapter 5, Problem 2PROB

Summary Introduction

The rate of return on an investment is the profit or loss on yields of investment which are gained by an investor.

Yield=[(No. of shares×Current price per share)−(No. of shares×Original price per share)]+(No. of shares×Dividend per share)(No. of shares×Original price per share)

The number of shares to be purchased is 40 at $10 each. The current price per share is $9 and the dividend payments per share is $0.50.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

The maturity value of an $35,000 non-interest-bearing, simple discount 4%, 120-day note is:

Carl Sonntag wanted to compare what proceeds he would receive with a simple interest note versus a simple discount note. Both had the same terms: $18,905 at 10% for 4 years. Use ordinary interest as needed. Calculate the simple interest note proceeds. Calculate the simple discount note proceeds.

What you're solving for Solving for maturity value, discount period, bank discount, and proceeds of a note. What's given in the problem Face value: $55300 Rate of interest: 10% Length of note: 95 days Date of note: August 23rd Date note discounted: September 18th Bank discount rate:9 percent