An investor purchases a share for £5.31 at the beginning of the year. Six months later, the investor receives a dividend of £0.03 (net of tax) and immediately sells the share for £5.53. Capital gains tax of 30% is paid on the difference between the sale and the purchase price. Calculate the net annual effective rate of return the investor obtains on the investment. 数字 % Enter a percentage correct to 2 decimal places
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- An investor purchases 1000 shares of a company at GHS20 per share using his own equity of GHS10,000 and borrowing the rest from his broker at 20% per annum. If all the shares were sold one year later at GH¢28.50, calculate (a) the amount of money borrowed from the broker (b) the return on his equity taking into consideration all brokerage fees paid amounting 2.5% of the value of investment both for buying and selling of investment. (c) Return on his investment.Use the comission schedule from Company B shown in the table to find the annual rate of interest earned on the investment. (Note: commisions are rounded to the nearest cent.) An investor purchases 100 shares at $36.08 a share, holds the stock for 304 days, and then sells the stock for $49.31 a share. Assume a 360-day year. The annual rate of interest is %? (Round to three decimals)An investor purchases a stock for $50 and over the next year, receives a $0.75 dividend. At the end of the year, the stock is priced at $53. In the second year, the stock pays a $1.00 dividend and at the end of the year the stock is priced at $51. a. Compute the dollar return for each year. b. Compute the percentage return for each year.
- In you cash account, you buy 100 shares of XYZ Corporation at a price of $10 per share. Two months later, XYZ pays a dividend $0.21 per share. You sell all 100 shares of XYZ three months later at a price of $12 per share. What is your total return on this trade in percent terms?In you cash account, you buy 100 shares of XYZ Corporation at a price of $10 per share. Two months later, XYZ pays a dividend $0.21 per share. You sell all 100 shares of XYZ three months later at a price of $12 per share. What is your total return on this trade in dollar amount?An investor who wishes to purchase the stock belonging to Entity A to hold for two years will receive a dividend of $ 0.7 per share for the first year, $ 1.3 for the second year from this investment, and at the end of the second He estimates that it can be sold for $ 12.0 USD. What is the real value of the stock if the minimum rate of return expected by the investor is 20%? a) 15b) 2.81c) 9.81d) 21.81e) 5.81 ============= If the discount rate is 9%, what is the present value of 5375 USD received at the end of each year for 12 years?a) 25000,375b) 10000,5c) 12450,5d) 15500,375e) 38490,375 ============== The price / earnings ratio of the beta company stock has been calculated as 7.4. If the expected earnings per share of this stock for the next year is 2.5 USD, what is the real value of the stock? If the stock of this company is currently trading at 25 USD, can the relevant stock be purchased? a) 18.5 and should not be boughtb) 36 and must be purchasedc) 45 and must be purchased d) 18.5…
- Investor A makes a cash purchase of 100 shares of AB&C common stock for $78 a share.Investor B also buys 100 shares of AB&C but uses margin. Each holds the stock for one year,during which dividends of $9 a share are distributed. Commissions are 3 percent of the value ofa purchase or sale; the margin requirement is 75 percent, and the interest rate is 12 percentannually on borrowed funds. What is the percentage earned by each investor if he or she sellsthe stock after one year for (a) $69 and (b) $83? If the margin requirement had been 45 percent, what would have been the annual percentagereturns? What conclusion do these percentage returns imply?An investor buys 200 shares of stock selling at $71 per share using a margin of 70%. The stock pays annual dividends of $1.00 per share. A margin loan can be obtained at an annual interest cost of 6.1%. Determine what return on invested capital the investor will realize if the price of the stock increases to $85 within six months. What is the annualized rate of return on thistransaction? If the price of the stock increases to $85 within six months, the six-month return on this transaction is _____%You buy a stock for $47 per share and sell it for $50 after holding it for slightly over a year and collecting a $4 per share dividend. If dividend incone is taxed at a 20% rate and capital gains are taxed at 25%, what is your after tax holding period return? (Write your answer in percentage and round it to 2 decimal places)
- fee founders has perpetual prefferd stock outstanding that sells for $60 a share and pays a dividentd of $5 at the end of each year. what is the required rate of retyrn?Use the commission schedule from Company A shown in the table to find the annual rate of interest earned on the investment. (Note: commissions are rounded to the nearest cent.) An investor purchases 396 shares at $12.01 a share, holds the stock for 45 weeks, and then sells the stock for $16.63 a share. The annual rate is not (37.55%)** What is the annual rate %? (Round to five decimal placesAn investor purchases a bond 6 months after the issue. The bond will be redeemed at 105% eight years after issue and pays coupons of 4% per annum annually in arrears. The investor pays a tax of 25% on income and 15% on capital gains. a. Calculate the bond's purchase price per $100 nominal to provide the investor with a rate of return of 5% per annum effective. b. If the real rate of return expected by the investor from the bond is 2% per annum effective, then calculate the annual rate of inflation expected by the investor