You bought a stock three months ago for $34.18 per share. The stock paid no dividends....

Question

Question

You bought a stock three months ago for $34.18 per share. The stock paid no dividends. The current share price is $35.07.

What is the APR and EAR of your investment?

Please explain your answer in detail. Thanks!

Answer 1

Answer #1

APR is annual percentage rate

calculate 3 month rate increment

35.07 = 34.18*(1+r)

r = 2.6038% (for 3 month)

APR = 2.6038*4 = 10.4152%

EAR = 1.026038^4-1 = 10.8290% (it takes into a/c the compounding)

Answer 2

Similar Homework Help Questions

You bought a stock three months ago for $43.53 per share. The stock paid no dividends....

You bought a stock three months ago for $43.53 per share. The stock paid no dividends. The current share price is $47.24 What is the APR of your investment? APR = 34.09 % What is the EAR % of your investment?
You bought a stock three months ago for $48.57 per share. The stock paid no dividends....

You bought a stock three months ago for $48.57 per share. The stock paid no dividends. The current share price is $53.09. What is the APR of your investment? The EAR?
You bought a stock three months ago for $43.48 per share. The stock paid no dividends....

You bought a stock three months ago for $43.48 per share. The stock paid no dividends. The current share price is $47.09 What is the APR of your investment? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).) APR % What is the EAR of your investment? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).) EAR %

Calculating Returns You bought a stock three months ago for $53.26 per share. The stock paid...

Calculating Returns You bought a stock three months ago for $53.26 per share. The stock paid no dividends. The current share price is $58.97. What is the APR of your investment? The EAR?
You bought a stock four months ago for $75.32 per share. The stock paid no dividends. The...

You bought a stock four months ago for $75.32 per share. The stock paid no dividends. The current share price is $78.34.Required:What is the APR and EAR of your investment? (Do not include the percent signs (%). Round your answers to 2 decimal places (e.g., 32.16).)InvestmentAPR= %EAR= %
Three months ago, CSG stock was selling for $44.25 a share. At that time, you purchased...

Three months ago, CSG stock was selling for $44.25 a share. At that time, you purchased three put options on the stock with a strike price of $45 per share and an option price of $1.75 per share. The option expires today when the value of the stock is $42.50 per share. What is your net profit or loss on this investment? Ignore commissions and taxes. Round the answer to the nearest dollar. Enter as positive if a profit; enter...

Suppose you bought XYZ stock 1 year ago for $6.88 per share and swll it ar...

Suppose you bought XYZ stock 1 year ago for $6.88 per share and swll it ar $9.61. You also pay commission of .$25 per share on your aale. What is the total retuen on your investment?
One year ago, you bought a share for $5.18. Unfortunately, the share did not pay you any dividends during that yea...

One year ago, you bought a share for $5.18. Unfortunately, the share did not pay you any dividends during that year. The share price is now $10.16. What is the return you received on this share? (as a percentage to the nearest two decimal points don't use sig eg 2.8819 2.38) Answer: You think that your chance of getting a well-paid job in an investment Bank is a percent. you get the job you will have a starting salary of...
Three months ago, you purchased a stock for $70.88. The stock is currently priced at $76.98....

Three months ago, you purchased a stock for $70.88. The stock is currently priced at $76.98. What is the EAR on your investment? Multiple Choice 34.42% 39.13% 8.61% 31.56% 42.69%

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?