Investment - Total Rate of Return. Isabela purchased 100 shares of Gorman Inc. at $3.15 andsold them a year later at $4.00. With 1% commission rate on each transaction and a dividend of$0.35 per share throughout this year, what was the return on her investment?O a. 11.00%O b. 28.50%O c. 24.47%d. 35.47%

Purchase price = $ 3.15 Commission rate = 1% Investment per share (I) = Purchase price*(1+Commission…

Answered: Investment - Total Rate of Return.…

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter5: The Cost Of Money (interest Rates)

Section: Chapter Questions

Problem 2PROB

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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.
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I have no idea how to calculate this return on investment. Help Wanted Two years ago, you purchased 100 shares of General Mills Corporation. Your purchase price was $59 a share, plus a total commission of $30 to purchase the stock. During the last two years, you have received the following dividend amounts: $1.85 per share for the first year and $1.98 per share the second year. Also, assume that at the end of two years, you sold your General Mills stock for $67 a share minus a total commission of $39 to sell the stock. Calculate the dividend yield for your General Mills stock at the time you purchased it. Note: Enter your answer as a percent rounded to 2 decimal places. Calculate the dividend yield for your General Mills stock at the time you sold it. Note: Enter your answer as a percent rounded to 2 decimal places. Calculate the total return for your General Mills investment when you sold the stock at the end of two years. Note: Do not round intermediate calculations. Round your…

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