1a) You purchased a share of stock for $35.40 seven years ago and just sold it...

Question

Question

1a) You purchased a share of stock for $35.40 seven years ago and just sold it today for $58.37. No

dividends were paid out over the seven years but you did receive an accumulated dividend of $5.80

when you sold the stock. What is your (a) Dollar gain or loss; (b) HPR; (c) Simple annual return; and (d)

Compound annual return?

1b) You bought a stock for $60.54 and sold it 5 months later for $68.95 with no dividends paid. What is

your (a) Dollar gain or loss; (b) HPR; (c) Simple annual return; and (d) Compound annual return?

Answer 1

Answer #1

1a.

Dollar Gain = (58.37 - 35.40) + 5.80 = $28.77

HPR = (58.77 - 35.40 + 5.80)/35.40 = 82.40%

Simple Return Rate = 0.8240/7 = 11.77%

CAGR = (1.8240)^1/7 - 1 = 8.97%

Answer 2

Similar Homework Help Questions

can I please have answer with solutions? thank you! Stocks with higher market risk should have...

can I please have answer with solutions? thank you! Stocks with higher market risk should have higher returns. True 40.) Aztec stock two times risky as the market on average. Given the market risk premium of 10%, a risk freera using CAPM what is the expected return of Aztec? 41.) You purchased a share of stock for $35.40 seven years ago, and sold it today for $58.37. No dividends were paid out of the seven years, but you did receive...
You bought stock in ZULU corp. 5 years ago at $ 31.12/share. You just sold it...

You bought stock in ZULU corp. 5 years ago at $ 31.12/share. You just sold it for $ 40.38/share. What was your compound average return? The compound average return is __%. (Round to two decimal places.)
1. (10 points) You sold a stock for $50 that you purchased five years earlier for...

1. (10 points) You sold a stock for $50 that you purchased five years earlier for $24. The stock paid no dividends. What was the holding period return (HPR)? What was the annualized, compound return?

You bought a stock a year ago for $50 per share and sold it today for...

You bought a stock a year ago for $50 per share and sold it today for $55. It paid a $1 dividend yesterday. 1. What was your realized return? 2. How much of the return came from the dividend yield and how much came from the capital gain? 3. The same scenario as above, but the stock fell to $45 per share. What is the dividend yield now? What is the capital gain now?
You bought a stock one year ago for $50.52 per share and sold it today for...

You bought a stock one year ago for $50.52 per share and sold it today for $45.96 per share. It paid a $1.77 per share dividend today. a. What was your realized return? b. How much of the return came from dividend yield and how much came from capital gain?
You bought a share of stock for. $47.50 that paid a dividend of $.72 and sold...

You bought a share of stock for. $47.50 that paid a dividend of $.72 and sold one year later for $51.38. What was your dollar profit/loss and holding period return? a) $3.88 ; 9.68% b) $4.60 ; 9.68% c) $3.88 ; 8.95% d) $0.72 ; 7.55%

Assuming you purchased a share of stock for $76.00 one year ago, sold it today for...

Assuming you purchased a share of stock for $76.00 one year ago, sold it today for $92.99, and during the year received a dividend payment of $5.05, calculate the following: a. Income. b. Capital gain (or loss). c. Total return (1) In dollars. (2) As a percentage of the initial investment
You purchased 300 shares of General Electric stock at a price of $71.83 four years ago....

You purchased 300 shares of General Electric stock at a price of $71.83 four years ago. You sold all stocks today for $61.91. During that period the stock paid dividends of $4.56 per share. What is your annualized holding return (annual percentage rate)? Round the answers to two decimal places in percentage form.
You purchased 300 shares of General Electric stock at a price of $64.00 four years ago....

You purchased 300 shares of General Electric stock at a price of $64.00 four years ago. You sold all stocks today for $79.66. During that period the stock paid dividends of $1.97 per share. What is your annualized holding period return (annual percentage rate)? Round the answers to two decimal places in percentage form.

You purchased 250 shares of General Motors stock at a price of $79.99 two years ago....

You purchased 250 shares of General Motors stock at a price of $79.99 two years ago. You sold all stocks today for $78.24. During this period the stock paid dividends of $4.39 per share. What is your annualized holding period return (annual percentage rate)? Round the answers to two decimal places in percentage form.