Question

Arthur purchases 200 shares of HMS stock for $23 per share. He then makes subsequent purchases...

Arthur purchases 200 shares of HMS stock for $23 per share. He then makes subsequent purchases at the end of the following years:

Year 1: 50 shares at $26 per share

Year 2: 75 shares at $29 per share

Year 3: 25 shares at $36 per share

At the end of the fourth year, HMS is trading at $41 per share. What is the annualized time-weighted return on the stock over the 4-year period? (Assume that no dividends were paid over the 4-year period)

13.85%

14.25%

15.00%

15.55%

0 0
Add a comment Improve this question Transcribed image text
Request Professional Answer

Request Answer!

We need at least 10 more requests to produce the answer.

0 / 10 have requested this problem solution

The more requests, the faster the answer.

Request! (Login Required)


All students who have requested the answer will be notified once they are available.
Know the answer?
Add Answer to:
Arthur purchases 200 shares of HMS stock for $23 per share. He then makes subsequent purchases...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Similar Homework Help Questions
  • Last year Marla purchased 100 shares of stocks for $8 per share. She paid a flat...

    Last year Marla purchased 100 shares of stocks for $8 per share. She paid a flat $75 to purchase the shares. Since making her purchase, she has received $200 in dividends. Marla is concerned that the stock price will fall below its current FMV of $7. Calculate her holding-period return if she sells today and pays a $75 commission. Swarn bought 200 shares of a stock for $36 per share. He paid $245 in trading commissions. He received dividends in...

  • three years ago James Madison bought 200 shares of a mutual fund $23 a share 23....

    three years ago James Madison bought 200 shares of a mutual fund $23 a share 23. He receive total income dividends of $.92 per share he also receive total capital gain distributions of $.80 per share during a three-year period at the end of three years he sold his shares for $29 a share what was the total return for this investment Three years ago, James Matheson bought 200 shares of a mutual fund for $23 a share. During the...

  •  Thomas purchased 200 shares of stock A for ​$11 a share and sold them more than a year later for $ 9 per share. He purc...

     Thomas purchased 200 shares of stock A for ​$11 a share and sold them more than a year later for $ 9 per share. He purchased 700 shares of stock B for ​$41 per share and sold them for ​$53 per share after holding them for more than a year. Both of the sales were in the same year. If Thomas is in a 25​% tax​ bracket, what will his capital gains tax be for the​ year? If Thomas is...

  • Brad purchased 10 shares of stock for $10 per share. He paid a $5 commission. One...

    Brad purchased 10 shares of stock for $10 per share. He paid a $5 commission. One year later, he purchased another 10 shares at $9 per share. Again, he paid a $5 commission. In the second year, his disappoint got the best of him and he sold 10 shares ar $7 per share, paying another $5 commission. At the end of the third year, Brad liquidated his holdings, paying $5 in commissions at $8 per share What was his dollar-weighted...

  • 5-6. Earlier today, Stuart sold 200 shares of stock he owned. He purchased the stock three...

    5-6. Earlier today, Stuart sold 200 shares of stock he owned. He purchased the stock three years ago for $28 per share. Following is a table that shows the market value of the stock at the end of each year and the amount of the dividend that Stuart received during the year: Year Market Dividend Value (per share) share) (per $26 50.60 28 0.60 32 0.60 (a) What total return (yield) did Stuart earn during the three-year period he held...

  • 5-1. Yesterday Travis sold 1,000 shares of stock that he owned for $29 per share. Travis...

    5-1. Yesterday Travis sold 1,000 shares of stock that he owned for $29 per share. Travis purchased the stock one year ago for $28 per share. During the year, Travis received a quarterly dividend equal to $0.10 per share. What return (yield) did Travis earn during the time he owned the stock? 5-3. One year ago, Regina purchased $1,050 worth of Elite Electrician's common stock for $42 per share During the year, Regina received two dividend payments, each equal to...

  • A stock initially trades for $50 per share. An investor decides to purchase 1,500 of shares....

    A stock initially trades for $50 per share. An investor decides to purchase 1,500 of shares. After 5 years, the portfolio is worth $120,240.00. At that time, the investor decides to purchase an additional 120 shares. At the end of year 7, the portfolio is now worth $140,178.60. The investor then decides to sell 60 shares. At the end of year 11, the portfolio is now worth $129,667.20. Find the dollar weighted rate of return and the time rated rate...

  • Sara Sanders purchased 30 shares of Apple stock at $190.82 per share using the prevailing minimum...

    Sara Sanders purchased 30 shares of Apple stock at $190.82 per share using the prevailing minimum initial margin requirement of 58%. She held the stock for exactly 6 months and sold it without any brokerage costs at the end of that period. During the 6​-month holding​ period, the stock paid $1.49 per share in cash dividends. Sara was charged 5.4% annual interest on the margin loan. The minimum maintenance margin was 25%. a. Calculate the initial value of the​ transaction,...

  • Marlene Bellamy purchased 400 shares of Writeline Communications stock at $ 55.36 per share using the...

    Marlene Bellamy purchased 400 shares of Writeline Communications stock at $ 55.36 per share using the prevailing minimum initial margin requirement of 54%. She held the stock for exactly 7 months and sold it without any brokerage costs at the end of that period. During the 7​-month holding​ period, the stock paid $ 1.64 per share in cash dividends. Marlene was charged 7.8 % annual interest on the margin loan. The minimum maintenance margin was 25%. a. Calculate the initial...

  • Marlene Bellamy purchased 500 shares of Writeline Communications stock at $55.02 per share using the prevailing...

    Marlene Bellamy purchased 500 shares of Writeline Communications stock at $55.02 per share using the prevailing minimum initial margin requirement of 58%. She held the stock for exactly 44 months and sold it without any brokerage costs at the end of that period. During the 44​-month holding​ period, the stock paid $1.63 per share in cash dividends. Marlene was charge 7.5% annual interest on the margin loan. The minimum maintenance margin was 25 % a. Calculate the initial value of...

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