Answered: Did you make or lose money? How much…

Business

Finance

Did you make or lose money? How much did you make or lose

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter13: Property Transact Ions: Determination Of Gain Or Loss, Basis Considerations, And Nontaxable Exchanges

Section: Chapter Questions

Problem 5BCRQ

See similar textbooks

Related questions

Q: Last year, Mike bought 100 shares of Dallas Corporation common stock for $53 per share. During the…

A: rate of return = [selling price less purchase price +dividends ] / purchase price

Q: Last year, Carlotta bought five shares of Spot-Off Cleaners for $85 each. During the year, Carlotta…

A: Dividend Yield refers to the amount of dividend paid on each stock. It is usually calculated in…

Q: On the advice of your uncle, you purchased 10 shares of a well-established U.S-based corporate stock…

A: Cost of share bought initially = $25 for 10 shares After 8, quarter from 0th period, bought another…

Q: David spent $625 on 30 shares in a software company. Aftor six months, the valuos of his stocks are…

A: Price of stock = 625 Number of shares purchased = 30 Current Value of stock = 4762.80 Dividend Yield…

Q: Last year, Julie Johnson bought one share of com- mon stock for $950. During the year, Julie…

A: a) Rate of Return on her Investment = (Sell Price - Purchase Price + Dividend Received) / Purchase…

Q: Wu of Troy, New York, has $5,000 that he wants to invest in the stock market. Ji is in college on a…

A: Here, Investment Amount is $5,000 Current price of Share is $25 EPS is $1.25 Last Year Income is…

Q: An investor bought 100 shares of stock at a cost of $10 per share. He held the stock for 15 years…

A: Computation:

Q: You bought 400 shares of Heavy Metal Inc. at ₱300 per share over the year, you received ₱75 per…

A: The question gives eth following information:

Q: ou purchased 1,500 shares of stock in Natural Chicken Wings, Inc., at a price of $43.67 per share.…

A: Given information : Total number of shares 1500 Price of stock $ 43.67 Dividends…

Q: What is the dollar amount of dividends that he received for owning the stock during the year?

A: Total Return ($) = Appreciation in stock price + Dividend income Total Return(%) = (Current stock…

Q: Mr. Dow bought 100 shares of stock at $24 per share. Three years later, he sold the stock for $30…

A: An investor has undertaken a share purchase and sale transaction. We have to find out the annual…

Q: ack bought a stock one year ago for $50 per share and sold it today for $55 per share. It paid a $1…

A: given, purchase price = $50 Selling price = $55 dividend = $1

Q: ast year, you purchased 700 shares of Forever, Inc., stock at a price of $49.62 per share. You…

A: Information Provided: Purchase price = $34,734 (700 shares * $49.62) Dividends = $1050 Closing price…

Q: You bought 500 shares of Facebook one year ago. The price was $300 per share. You financed 50% of…

A: Rate of return is calculated by dividing the total profit by the initial investment by the investor.

Q: purchases 1,000 shares at the price of $50 using his margin account. The initial margin is 50% and…

A: Margin call is received when the margin goes below maintenance margin.

Q: At what selling price, she would have generated that return?

A: Information Provided: Purchase price = $80 Current selling price = $60

Q: Last year, Damian Lillard paid $39.25 for shares of Gatorade. Afterwards, he received a dividend of…

A: In the given question we require to calculate the capital gains yield from following details:…

Q: Six months ago, you purchased 1,400 shares of ABC stock for $21.33 a share. You have received…

A: Given: Number of shares = 1,400 Purchase price = $21.33 Sale price = $24.47 Dividend = $0.6

Q: If Penny bought a stock for $80 dollars and could sell it 15 years later for 4 times what she…

A: Computation of the Penny’s return for owning the stock for 15 years is shown below: Hence, the ROR…

Q: What was the total percentage return on this investment? Answer as a percentage (e.g. 0.01 is 1.0%)…

A: Total return refers to a method which shows the relationship between the total return and current…

Q: rrowed on margin to $10K to buy 40,000 shares of NVM stock when it was trading at 45 cents a share.…

A: Broker gives margin to the clients so that they can increase the trading volume and they can trade…

Q: An investor bought 100 shares of Omega common stock for $14,000. He held the stock for 9 years. For…

A: The expected return of investment refers to the return that is anticipated on an investment.…

Q: One year ago, Richard purchased 90 shares of common stock for $15 per share. During the year, he…

A: The stock return is the measure of the performance of a stock. It shows a stock's profit or loss…

Q: 1) Jane is 25 years old and was able to save $25,000. After doing some research, she identifies a…

A: Future Value: Using an expected rate of growth, future value (FV) is defined as the worth of a…

Q: Did you make a profit or lose money? How much did you make or lose?

A: Ownership of an organization can be broken down into small parts or units also known as Shares.…

Q: Today, Andrew sold 3,600 shares of Colts stock for $26.60 per share. Andrew paid $101,124 for the…

A: Hence, initial price of the share is $28.09, which is determined by dividing the total amount paid…

Q: Last year, Julie Johnson bought one share of common stock for $900. During the year, Julie received…

A: Purchasing price of common stock is $900 Dividend received during holding is $69.50 Selling price of…

Q: A person has $28,000 invested in stock A and stock B. Stock A currently sells for $20 a share and…

A: Stocks are basically combined in a proportion keeping in mind the diversification benefit created by…

Q: Gelo, an investor, receives a 15% total return by purchasing a stock for P40 and selling it after…

A: The return on equity stock is capital gain and the other is the dividend on investment. A capital…

Q: Lee purchased a stock one year ago for $26. The stock is now worth $34, and the total return to Lee…

A: Dividend: Dividend refers to the return on capital invested in shares. It is payable to the…

Q: If you own 18,000 shares of stock of Nike and it pays a dividend of $0.26 per share, then what is…

A: The dividend is that part of the profit that is distributed among the shareholders of the company.…

Q: This morning Sophia sold 500 shares of Multiface Consulting for $75.60 per share. She purchased the…

A: To find the yield or rate of return for Sophia over one year, we will find the total return. Total…

Q: An investor purchased 100 shares of stock in a company for $20 per share. One year later, the…

A: The rate of return is the percentage rate that shows the net gain/ (loss) earned during the period…

Q: Last year, Julie Johnson bought one share of common stock for $950. During the year, Julie received…

A: The rate of return that is expected by investors on their equity investment is term as the cost of…

Q: a) Jessie B. purchases 450 shares of Smooth Sail Inc. for $50 per share at a time when the initial…

A: Margin trading is a facility which is provided by the broker to the investor that, investor can…

Q: Your grandfather invested $1,000 in a stock 41 years ago. Currently, the value of his account is…

A: Geometric return = Future ValuePresent Value1n-1

Q: Dan make on the sale (e

A: Given: 200 shares of a stock=P140 the stocks at P145.50

Q: Amy bought 100 shares of ABC Co. stock for RM58.00 per share on 60% margin. Assume she holds the…

A: Bought 100 shares at RM 58. Therefore, Margin is 60%. Therefore, Stock price went down by 10%.

Q: As a principal in the consulting firm where you have worked for 20 years, you have accumulated 5000…

A: A stock is a financial instrument issued by a corporation to raise equity funds for a long-term…

Q: An investor purchased 50 shares of stock in a company for $1,600. One year later, the investor sold…

A: given, purchase price = $1600 Selling price = $1500

Q: Four friends Sheldon, Raj, Leonard and Howard decided to invest their 50,000 dollars savings in…

A: Analysis of the options: Step I- Sheldon is not owner of Blue chip stock and so is Raj.…

Q: Curtis purchased a stock with an initial share price of $140 and sold it when the share price was…

Q: Tiffany bought a stock for $80 and company paid no dividend. At the end of the year she sold the…

A: Return on stock is equal to the sum of all the dividends earned on stock and capital gain minus the…

Q: Abigail bought 28 shares of stock at $30.00 per share. She received dividends of $49.50 during the…

A: GIVEN ÷ Purchase price per share = $30 No. Of shares purchased = 28 shares Total dividend received =…

Q: Mr. Dow bought 100 shares of stock at $13 per share. Three years later, he sold the stock for $19…

A: Annual rate of return is the return we get on the investments over the period of time. The investors…

Q: Jack bought a stock and paid $50 per share. Two years later, he sold the stock for $60 after…

A: given data jack brought a stock = 50 after two years he sold = 60 cash dividend = 2 profit = 50 -…

Q: On the advice of your uncle, you purchased 10 shares of a well-established U.S.-based corporate…

A: Given: Initial purchase = 10 shares Price per stock for initial purchase = $21 Number of dividends…

Concept explainers

Stock Yields

The stock yield is otherwise known as the dividend yield. The dividend yield is an annual payment of the stock dividends to the holder of a firm’s stock. The dividend yield is a financial ratio to measure the value of dividend payout every year for the relative stock price. The yield of a stock is usually shown in a percentage that discloses the expected future earnings from stock depending on the current stock price in the future. Stock yield will change depending on the market fluctuations and in accordance with the market fluctuations, the dividends will be increased or decreased by the firm.

Question

You purchased 155 shares of Willy Wonka Chocolates for $12 per share. Two years later you sell your 155 shares for $23 per share. Did you make or lose money? How much did you make or lose? Explain your results mathematically.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

You purchased 200 shares of Willy Wonka Chocolates for $20.76 per share. Six months later you sell half your shares for $23.67 per share. A year later you sell the other half for $19.21. Did you make a profit or lose money? How much did you make or lose? Explain your results mathematically.
Peter Gunderson bought 2,000 shares of stock in a transportation company at $45.10 per share. Ten months later he sold the stock at $78.22 per share. If he had to pay his broker a commission of $85, how much profit did Peter make on this investment? Round your answer to the nearest dollar.
This morning Sophia sold 500 shares of Multiface Consulting for $75.60 per share. She purchased the stock for $70 one year ago. During the time she held the stock, Sophia received two dividend payments; one dividend payment was $1.00 per share and the other dividend payment was $1.10 per share. What yield (rate of return) did Sophia earn on her investment for the year she held the Multiface stock?
Last year Daniel bought 100 shares of Texas Corporation common stock for R53 per share. During the year he received dividends of R1.45 per share. The stock is currently selling for R60 per share. What rate of return did Daniel earn over the year? What is the correct answer? A. 11.7 percent B. 13.2 percent C. 14.1 percent D. 15.9 percent
Lee purchased a stock one year ago for $26. The stock is now worth $34, and the total return to Lee for owning the stock was 0.35. What is the dollar amount of dividends that he received for owning the stock during the year? Round to two decimal places.
Last year, Julie Johnson bought one share of common stock for $950. During the year, Julie received a $60.50 dividend. Earlier today, she sold the stock for $976. What rate of return did Julie earn on her investment? Round your answer to two decimal places. _______ % What were the dividend yield and the capital gains yield associated with holding the stock? Round your answers to two decimal places. Dividend yield: _______ % Capital gains yield: _______ %
Last year, Carlotta bought five shares of Spot-Off Cleaners for $85 each. During the year, Carlotta recieved one cash dividend equal to $5.10 per share. Earlier today, she sold the stock for $88.40. (a) What rate of return did Carlotta earn on her investment? (b) What were the (1) dividend yield and (2) the capital gains tield associated with holding the stock?
A year ago, Kim Altman purchased 190 shares of BLK, Inc. for $27.00 on margin. At that time the margin requirement was 60 percent. If the interest rate on borrowed funds was 6 percent and she sold the stock for $35.50, what is the percentage return on the funds she invested in the stock? Round your answer to two decimal places. %
Last year, Julie Johnson bought one share of common stock for $950. During the year, Julie received a $47.50 dividend. Earlier today, she sold the stock for $988. (a) What rate of return did Julie earn on her investment? (b) What were the (1) dividend yield and (2) the capital gains yield associated with holding the stock? Your broker offers to sell you shares of Wingler & Company common stock, which paid a dividend of $2 yesterday. You expect the dividend to grow at a rate of 5 percent per year into perpetuity. If the appropriate rate of return for the stock is 12 percent, what is the market value of Wingler’s stock? Ocala Company’s stock is currently selling for $19.50 per share. At the end of the year, the company plans to pay a dividend equal to $2.34 per share. For the remainder of the company’s life, dividends are expected to grow at a constant rate, and investors are expected to require a 16 percent return to invest in Ocala’s stock. What should be the value of…
One year ago, Richard purchased 90 shares of common stock for $15 per share. During the year, he received one dividend payment in the amount of $1.05 per share. If the stock currently is worth $16 per share, what yield did Richard earn on his investment for the year? Do not round intermediate calculations. Round your answer to two decimal places. Use a minus sign to enter a negative value, if any. %
Last year Vivienne bought 100 shares of Holding Corporation common stock for $43 per share. During the year he received dividends of $1.30 per share. The stock is currently selling for $50 per share. What rate of return did Vivienne earn over the year?
Sarah and James Hernandez purchased 160 shares of Cisco Systems stock at $20 a share. One year later, they sold the stock for $26.40 a share. They paid a broker $22 commission when they purchased the stock and a $30 commission when they sold the stock. During the twelve month period they owned the stock, Cisco Systems paid dividends that totaled $0.24 per share. Calculate the Hernandez’s total return for this investment.