Frank's Franks went public and opened at $15.00 per share. One year later the stock was selling for $17.50 per share. What was the holding period return if during the year Frank sent out $1.25 per share in dividends?
XYZ Corp expects to have $350,000 in sales in a poor economy, $500,000 in a moderate economy, and $900,000 in a booming economy. If the chances of a booming economy and poor economy are 10% each, what is the expected sales?
Holding period Ret = [ Sale Price - Purn=chase Price + Div ] / Purchase Price
= [ 17.5 - 15 + 1.25 ] / 15
= [ 2.5 +1.25 ] / 15
= 3.75 / 15
= 0.25 i.e 25%
Part B:
Expected Sales is weighted Avg sales
| Economy | Weight | Sales | Wtd Sales |
| poor | 10% | $ 3,50,000.00 | $ 35,000.00 |
| Modearate | 80% | $ 5,00,000.00 | $ 4,00,000.00 |
| Boom | 10% | $ 9,00,000.00 | $ 90,000.00 |
| Expected Sales | $5,25,000.00 | ||
Frank's Franks went public and opened at $15.00 per share. One year later the stock was...