ZuoTi.Pro
Question

You decide to take your first step towards investing and purchase an International Business Machines (IBM)...

You decide to take your first step towards investing and purchase an International Business Machines (IBM) stock. The IBM stock started the year at $165.99 per share, paid $5.90 in dividends, and ended 2019 at $153.42. Please compute the dollar return and percentage return of your investment. Interpret the percentage return.
business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

dollar return = final price - initial price + dividend

= 153.42 - 165.99 + 5.9

= -6.67

percentage return = dollar return/initial price

= -6.67/165.99

= -4.02%

0 0
Add a comment
Know the answer?
Add Answer to:
You decide to take your first step towards investing and purchase an International Business Machines (IBM)...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • After finishing your first finance class, you decide to start your own investment plan. Your first...

    After finishing your first finance class, you decide to start your own investment plan. Your first stock to purchase is Walgreen’s (WAL). You are confident enough to project next year’s dividend as $1.00. However, you are unsure of future dividends, so you just assume they will grow at 5.00% per year going forward each year. If you want a 15.00% return on your investment, what value do you place on the stock today?

  • 1. A stock sells for $10 per share. You purchase 100 shares for $10 a share...

    1. A stock sells for $10 per share. You purchase 100 shares for $10 a share (i.e., for $1,000), and after a year the price rises to $17.50. What will be the percentage return on your investment if you bought the stock on margin and the margin requirement was (a) 25 percent, (b) 50 percent, and (c) 75 percent? (Ignore commissions, dividends, and interest expense.) Please show how to solve in Excel Step-by-Step.

  • P9-6 Defining and Analyzing Changes in Current Liabilities LO9-1 International Business Machines (IBM) is a leading...

    P9-6 Defining and Analyzing Changes in Current Liabilities LO9-1 International Business Machines (IBM) is a leading provider of computer products and services. The company is known for its hardware products but has focused on providing information technology services in recent years. IBM provides standard warranties and extended warranties with the sale of its products. The company's note on significant accounting policies is as follows: The company offers warranties for its hardware products that generally range up to three years, with...

  • Summer I: 2018-2019 Mid Term E C2: As a business administration student, you are considering a...

    Summer I: 2018-2019 Mid Term E C2: As a business administration student, you are considering a potential investment in a company that appears to be of great value. a. The company is expected to earn $10.50 per share at the end of this year. If the fair rate of return for this stock is 9 percent, what is an the company pays out all earnings as dividends? b. If the company were to pay out half of its earnings as...

  • You have just been hired by Internal Business Machines Corporation (IBM) in their capital budgeting division....

    You have just been hired by Internal Business Machines Corporation (IBM) in their capital budgeting division. Your first assignment is to determine the free cash flows and NPV of a proposed new type of tablet computer similar in size to an iPad but with the operating power of a high-end desktop system. Development of the new system will initially require an initial capital expenditure equal to 10% of IBM’s Property, Plant, and Equipment (PPE) at the end of fiscal year...

  • Requirement 1: ACCOUNTING AND THE BUSINESS ENVIRONMENT. Have you ever dreamed of running of your own...

    Requirement 1: ACCOUNTING AND THE BUSINESS ENVIRONMENT. Have you ever dreamed of running of your own business? If so, where would you begin? How much money would you need? What type of business you plan to form? Or maybe, you would like to be an investor. There are a lot of decisions to make. And you don't have to be an accountant to make a good decision, but understanding accounting can assist you to answer these questions. Required: 1. You...

  • Hello, can I please get a step by step solution using excel? Thank you! National Business...

    Hello, can I please get a step by step solution using excel? Thank you! National Business Machine Co. (NBM) has $4.4 million of extra cash after taxes have been paid. NBM has two choices to make use of this cash. One alternative is to invest the cash in financial assets. The resulting investment income will be paid out as a special dividend at the end of three years. In this case, the firm can invest in either Treasury bills yielding...

  • The salesman from Superfast Machines claims that if you trade-in your old machine for one of...

    The salesman from Superfast Machines claims that if you trade-in your old machine for one of his new machines, you could save your company $60,000 a year. As his new machine costs $120,000 after the trade-in, the investment pays for itself in 2 years. Since the machine has a life of 3 years and a salvage value of $30,000, the salesman claims that this deal lets you use the machine for free in year 3 as well as receiving a...

  • can i please get help please provide step by step ective 4 common stock appears to...

    can i please get help please provide step by step ective 4 common stock appears to have P15.284 Using ratios to decide between two stock investments Assume that you are purchasing an investment and have decided to invest in a com pany in the distal phone business. You have narwed the choice to Digitalized Corp and Every Zone, Inc. and have assembled the following data Selected income statement data for the current year 54.25 Net Sales Revenue (all on credit)...

  • Calculator Print Item Exercise 12-79 Debt Management Ratios Financial statements for Steele Inc. follow. Steele Inc....

    Calculator Print Item Exercise 12-79 Debt Management Ratios Financial statements for Steele Inc. follow. Steele Inc. Consolidated Income Statements (in thousands except per share amounts) 2019 2018 2017 $6,944,296 (4,953,556) $1,990,740 (1,202,042) $6,149,218 (4,355,675) $1,793,543 (1,080,843) Net sales Cost of goods sold Gross margin General and administrative expenses Special and nonrecurring items Operating income Interest expense Other income Gain on sale of investments Income before income taxes Provision for income taxes Net income $7,245,088 (5,286,253) $1,958,835 (1,259,896) 2,617 $701,556 (63,685)...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT