None Question:Solve this question........One year ago, Stacey purchased 100 shares ofKNF stock for $3,245. Today, she sold thoseshares for $35.00 per share. What is the capitalgains yield on this investment if the dividend yieldis 1.4 percent?a) 7.11 percentb) 7.86 percentc) 5.96 percentd) -7.29 percente) -7.86 percen

To calculate the capital gains yield, we must first identify the starting and ultimate values of the…

Answered: Question: Solve this question........…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter7: Common Stock: Characteristics, Valuation, And Issuance

Section: Chapter Questions

Problem 5P

See similar textbooks

Similar questions

Investment - Total Rate of Return. Bailee purchased 475 shares of Millersview Corp. at $22.78 and sold them a year later at $25.75. With 1% commission rate on each transaction and a dividend of $1.93 per sharelthroughout this year, what was the return on her investment? O a 8.38% O b. 17.28% Oc 10.75% O d. 19.14%
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: _______ %
8.An investor purchased 100 shares of common stock at GH¢20 per share one year ago. The company declared and paid a dividend of GH¢2 per share during the year. The investor sold the stock for GH¢21 per share after the one-year holding period. a.Calculate the HPR for this investment Partition the HPR into dividend return and capital appreciation return .
Investment - Total Rate of Return. Isabela purchased 100 shares of Gorman Inc. at $3.15 and sold 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%
One year ago, you bought a stock for $50.39 a share. You received a dividend of $2.97 per share last month and sold the stock today for $49.58 a share. What is the capital gains yield (in percent) on this investment? Correct pls.
You buy a share for $15.21 and sell it exactly one year later for $17.38. Your total return on the investment was 24.46%. What was the value of dividends paid on the share during the year? Question 5 Answer a. $1.55 b. $2.00 c. $ 1.76 d. $2.19
5. Rachelle Ching is an investment analyst. She was asked by Macrille Samson, an investor, to assess the viability of an investment in Consti Corp. Macrille expects to hold the investment for five (5) years and sell it at the end of the holding period.Rachelle forecasted that Consti Corp. will pay the following dividends: Year Dividend per Share 5 P3.604 3.483 3.222 2.981 2.50 Rachelle expects that at the end of the third year, the selling price of the company's stock will be P125 per share. She also estimated that the cost of capital is 5%. The current stock price is P150 per share. What is the value of the shares? 6. Anna Company wants to buy shares of Sana Company which are currently selling at P30 per share on the Philippine Stock Exchange (PSE). Research shows that dividends are stable at P6 per year and it is expected to be resold at P20 per share after a year. Anna expects an 8% return on her investment and plans to hold the…
uns investment opportunity? Explain. EXERCISE 7-10 Net Present Value Analysis L07-2 Kathy Myers frequently purchases stocks and bonds, but she is uncertain how to determine the rate of return that she is earning. For example, three years ago she paid $13,000 for 200 shares of Malti Company's common stock. She received a $420 cash dividend on the stock at the end of each year for three years. At the end of three years, she sold the stock for $16,000. Kathy would like to earn a return of at least 14% on all of her investments. She is not sure whether the Malti Company stock provide a 14% return and would like some help with the necessary computations. Required: 1. Compute the net present value that Kathy earned on her investment in Malti Company stock. obio Round your answer to the nearest whole dollar. unsde. I 2. Did the Malti Company stock provide a 14% return? ut Jhol 25zu sviitaten sowied
Suppose you purchase one share of the stock of Red Devil Corporation at the beginning of year 1 for $43.00 At the end of year 1, you receive a dividend of $2, and buy one more share for $47.00. At the end of year 2, you receive total dividends of $4 (e., $2 for each share), and sell the shares for $55.00 each. What is the time-weighted return on your investment? (Round your answer to 2 decimal places. Do not round intermediate calculations.) Return 1%
1. You purchase 100 shares for $50 a share ($5,000), and after a yearthe price rises to $60. What will be the percentage return on yourinvestment if you bought the stock on margin and the marginrequirement was? a.25 percent b.50 percent c.75 percent 2. Repeat Problem 1 to determine the percentage return on yourinvestment but in this case suppose the price of the stock falls to$40 per share. What generalization can be inferred from youranswers to Problems 1 and 2? 3. How many years will it take for 197000 dollars to grow to 554000 dollars if it is invested in an account with a quoted annual interest rate of 8 percent with monthly compounding interest?
You purchased a share of stock last year for $50. You collected a dividend of $1 and sold it for $52. What was the capital gains yield you earned? Group of answer choices 2.00% 6.00% 4.00% 12.00%
1. An investor purchased a stock one year ago for $58.00. It paid an annual cash dividend of $4.38 and is now worth $65.01. What total return did the investor earn? Would the investor have experienced a capital gain? Explain. Review Only Click the icon to see the Worked Solution. The investor would experience (1) in the amount of $ (Choose from the drop-down menu and round to the nearest cent.) The total return earned by the investor is $ (Round to nearest cent.) The total percentage return by the investor %. (Round to two decimal points.) (1) a capital gain a capital loss neither

SEE MORE QUESTIONS

Recommended textbooks for you

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

SEE MORE TEXTBOOKS