You purchase 100 shares of stock for $40 a share. The stock pays a $2 per share dividend at year-end. a. What is the rate of return on your investment if the end-of-year stock price is (i) $38; (ii) $40; (iii) $42? (Leave no cells blank - be certain to enter "O" wherever required. Enter your answers as a whole percent.) Stock Price Rate of Return 38 40 % 42 b. What is your real (inflation-adjusted) rate of return if the inflation rate is 4%? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Negative amounts should be indicated by a minus sign.) Stock Price Real Rate of Return 38

Q: ou purchase 100 shares of stock for $50 a share. The stock pays a $2 per share dividend at year-end.…

A: a. The below expression can be used to calculate the rate of return:

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A: Dollar return = No. of share (Capital gain + Dividend)

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A: Holding period is defined as the total amount that a person earns for keeping an assets for a period…

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A: Here, No. of Shares purchased is 100 Purchase Price of Share is $40 Dividend per share is $2

Q: ou purchase 100 shares of stock for $50 a share. The stock pays a $4 per share dividend at year-end.…

A: a) The computation of rate of return as follows: Hence, the rate of return at 46,50 and 52 are…

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A: Part (a): Calculation of rate of return on investment: Excel spreadsheet:

Q: You purchase 100 shares of stock for $50 a share. The stock pays a $3 per share dividend at…

A: Holding period return includes capital gain and dividend amount received form the share in its…

Q: On February 1, you bought 100 shares of a stock for $34 a share and a year later you sold it for $39…

A: Given: Number of shares = 100 Purchase price = $34 Closing price = $39

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A: Rate of return on investment Rate of return on investment is calculated as shown below. Rate of…

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A: Calculate the total percentage return as follows:

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A: A margin call is made when an investor's equity, expressed as a percentage of the total market value…

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A: The realized return on investment can be calculated as difference in purchase price and sale price…

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A: Common stock: It is financial security representing ownership in a company. These are shares held by…

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A: Required rate of return = (Selling price + Dividend per share - Current Purchase price )/ Current…

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A: Dividend yield = Annual dividend / current market price

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A: Value of preference shares = Dividend / Required rate

Q: (а) Donald is considering the merits of two securities. He is interested in the common shares of A…

A:

Q: Assume that you own a dividend-paying stock currently worth $150. You plan to sell the stock in 250…

A: Since you have not mentioned the specific question we will just answer the first question in case…

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A: Purchase Price of Share =$50 Dividend Paid = $2 If Share prices after 1 year = $48, $50, $54…

Q: You purchase 100 shares of stock for $40 a share. The stock pays a $2 per share dividend at…

A: The percentage return that an investor is earning from a particular investment in a particular time…

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A: Rate of return can be calculated from the difference between the beginning price and ending price…

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A:

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A: Expected value represents the likelihood worth of initial investment after considering the probable…

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A: Computation:

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A: Price of stock = 40 Dividend paid = 2   Rate of return = ?   Rate of Return = (Stock Price at end -…

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Q: return

A: Introduction: Return on investment can be defined as earnings which is made from an investment. It…

Q: 3

A: Calculation of sale price of stock: Answer: Sale price of the stock is $65.55 Given information:…

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