Jane purchased 100 shares of Zodcom on March 1, 2011 for $131.52 per share. The company instituted a 3:1 stock split 3 months later, and Jane then sold her shares for $49.03 per share. What was Jane's holding period return on this investment?
56.08% |
||
10.59% |
||
11.84% |
||
37.28% |
1 points
QUESTION 2
Jane purchased 100 shares of Zodcom on March 1, 2011 for $123.81 per share. The company instituted a 3:1 stock split 7 months later, and Jane then sold her shares for $46.33 per share. What was Jane's holding period return on this investment?
37.42% |
||
23.89% |
||
10.92% |
||
12.26% |
1 points
QUESTION 3
Magdalena purchased 100 shares of BQM on 1/1/2014 for $158.59 per share. During the year, the stock paid a dividend of $0.96 on 2/15/2014, another dividend of $0.96 on 5/15/2014, another dividend of $1.02 on 8/15/2014, and another dividend of $1.02 on 11/15/2014. Magdalena sold the shares on 12/31/2014 for $166.52 per share. What was Magdalena's holding period return for this investment?
5.64% |
||
7.14% |
||
7.50% |
||
4.80% |
1 points
QUESTION 4
Magdalena purchased 100 shares of BQM on 1/1/2014 for $117.29 per share. During the year, the stock paid a dividend of $0.71 on 2/15/2014, another dividend of $0.71 on 5/15/2014, another dividend of $0.76 on 8/15/2014, and another dividend of $0.76 on 11/15/2014. Magdalena sold the shares on 12/31/2014 for $145.44 per share. What was Magdalena's holding period return for this investment?
24.64% |
||
21.37% |
||
26.50% |
||
25.20% |
Question 1
Investor's total return comprises of 2 elements-capital gain/loss (change in market price) and dividend payment.
HPR = (Sale value - cost of acquisituion + coupon pay) / cost of acquisituion
= ((3*100*49.03)-(131.52*100))/(131.52*100)*100
= (14709-13152)/13152 *100
= 1557/13152 *100
= 11.84%
Question 2
HPR = (Sale value - cost of acquisituion + coupon pay) / cost of acquisituion
= ((3*100*46.33)-(123.81*100))/(123.81*100)*100
= (13899-12381)/12381*100
= 1518/12381*100
= 12.26%
Note: As per HOMEWORKLIB RULES, when multiple questions are posted, we are mandated do only the first question. So please post the questions individually.
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