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- QUESTION 9 Exhibit 1.1 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) Assume you bought 100 shares of NewTech common stock on January 15, 2003 at $50.00 per share and sold it on January 15, 2004 for $40.00 per share. Refer to Exhibit 1.1. What was your holding period return? a. 0.8 b. −10% c. 25% d. −20% e. −0.8which one is correct? QUESTION 11 Exhibit 1.7 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) You purchased 100 shares of GE common stock on January 1, for $29 a share. A year later you received $1.25 in dividends per share and you sold it for $28 a share. Refer to Exhibit 1.7. Calculate your holding period return (HPR) for this investment in GE stock. a. 0.9655 b. 1.0973 c. 1.0804 d. 1.0086 e. 1.0357An investor in Sony purchased the stock last year for $22.16. Today, the investor was able to sell the stock for $34.25. What capital gain did the investor earn in the past year?
- Q6 You purchased 300 shares of a non-dividend paying stock at $50.00 per share using 50% margin at a 10% annual interest rate. A year later you sold the stock for $40.20 and paid your annual interest on the margin loan. You paid $20 in commission in total. What was your total loss on this investment?A5 8c 8. Mr. Toriop owns 5000 shares of stock in Yummy Corporation. The company has announced that it will pay a dividend of $5 per share in one year and then a liquidating dividend of $50 per share in two years. The required return on ABC stock is 10%. c. Mr. Toriop wishes to have equal amount of dividend income for the next two years. How can he use homemade leverage on Yummy Corporation’s dividends to achieve this goal? Check that the present value of the cash flows will be the same as they are before the homemade leverage. (Hint: Dividends will be in the form of an annuity.)James Burton purchased a stock for 545 one year ago. The stock is now worth $65. During the year, the stock paid a dividend of $2.50. What is the total return to James from owning the stock? (Round your answer to the nearest whole percent.) none of the answers is correct. 5% 50% 35% 44%
- A5 8b. 8. Mr. Toriop owns 5000 shares of stock in Yummy Corporation. The company has announced that it will pay a dividend of $5 per share in one year and then a liquidating dividend of $50 per share in two years. The required return on ABC stock is 10%. b. What will be the company’s share price in one year?A5 8a. 8. Mr. Toriop owns 5000 shares of stock in Yummy Corporation. The company has announced that it will pay a dividend of $5 per share in one year and then a liquidating dividend of $50 per share in two years. The required return on ABC stock is 10%. a. What is the current share price of your stock?Question 4 b) You own 2,200 shares of Deltona Hardware. The company has stated that it plans on issuing a dividend of $0.42 a share at the end of this year and then issuing a final liquidating dividend of $2.90 a share at the end of next year. Your required rate of return on this security is 16 percent. Ignoring taxes, what is the value of one share of this stock to you today?
- Question 8 On 16th may 2021 you purchased some shares at a price of $78 per dollar a share and a year later you sold them for $92 a share. At the end of the year of purchase, you received a cash dividend of $2.5 a share. compute the holding period return on the share. show all the workings to justify your answer.A2 10d May I please have the answer in formula form and not excel. thx:) 10. Aunt Kathleen owns 3000 preferred shares of ABC Inc., and she is thinking of selling 100 of these shares to pay for a new computer. These shares pay a stable quarterly dividend of $0.65 per share (i.e., there will be four dividend payments in a year, and each payment is $0.65 per share). Aunt Kathleen’s required return is 12% APR compounded semi-annually. d. What is the maximum amount of money that Aunt Kathleen can spend on the new computer if she only uses the receipts from the sale of 100 shares of ABC’s preferred shares to pay for it?Subject : - Finanace An investor bought 10 shares of stock T for $800 per share. One year later, he sold the stock for $575 per share. Calculate the return on this investment