Solution
Two years ago, you purchased 100 shares of Coca-Cola Company. Your purchase price was $52 a...
Two years ago, you purchased 100 shares of General Mills Corporation. Your purchase price was $59 a share, plus a total commission of $29 to purchase the stock. During the last two years, you have received the following dividend amounts: $1.60 per share for the first year and $1.71 per share the second year. Also, assume that at the end of two years, you sold your General Mills stock for $66 a share minus a total commission of $38 to...
You purchased 100 shares of stock for a share price of $17.59. You sold the stock two years later for a share price of $18.27. You also received total dividend payments of $1.81 per share. What was your dividend yield?
Suppose you purchase 700 shares of stock at $52 per share with an initial cash investment of $18,200. The call money rate is 5 percent and you are charged a 1.5 percent premium over this rate. Ignore dividends. a. Calculate your return on investment one year later if the share price is $60. Suppose instead you had simply purchased $18,200 of stock with no margin. What would your rate of return have been now? (Do not round intermediate calculations. Enter...
In mid-2015, Coca-Cola Company (KO) had a share price of $ 43.76, and had paid a dividend of $ 1.04 for the prior year. Suppose you expect Coca-Cola to raise this dividend by approximately 6.8 % per year in perpetuity. a. If Coca-Cola's equity cost of capital is 8.1 %, what share price would you expect based on your estimate of the dividend growth rate? b. Given Coca-Cola's share price, what would you conclude about your assessment of Coca-Cola's future...
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.
Suppose you bought 500 shares of stock at an initial price of $44 per share. The stock paid a dividend of $.42 per share during the following year, and the share price at the end of the year was $45. a. What is the capital gains yield? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.) Capital gains yield % b. What is the dividend yield?...
Suppose you bought 700 shares of stock at an initial price of $43 per share. The stock paid a dividend of $0.40 per share during the following year, and the share price at the end of the year was $44. a. What is the capital gains yield? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) b. What is the dividend yield? (Do not round intermediate calculations. Enter your answer as a percent...
You purchased 250 shares of General Motors stock at a price of $89.79 two years ago. You sold all stocks today for $87.95. During this period the stock paid dividends of $5.15 per share. What is your annualized holding period return (annual percentage rate)? Round the answers to two decimal places in percentage form. (Write the percentage sign in the "units" box) Your Answer:
You purchased shares of a mutual fund at an offering price of $95 per share at the beginning of the year and paid a front–end load of 4.00%. If the securities in which the fund invested increased in value by 13.25% during the year, and the fund’s expense ratio was 1.50%, what is your rate of return if you sold the fund at the end of the year? Enter your answer rounded to two decimal places. The price of a...
Problem 1-2 Suppose you bought 200 shares of stock at an initial price of $38 per share. The stock paid a dividend of $.30 per share during the following year, and the share price at the end of the year was $41. a. What is the capital gains yield? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the'%"sign in your response.) Capital gains yield b. What is the dividend yield? (Do...