Question

Module Three Homework Template - Excel Data Review View Tell me what you want to do . Wiap Text Merge & Center Alignment 5 File Home Insert Page Layout Formulas X Cut Arial - 10-AA Copy - Format Painter BIU BBO A Clipboard Font X R PG-1 A B C D E P6-1 13 points % Conditional Format Formatting Table Styles Ch Styles Number F G H I J K L M N No credit will be given if work is not shown. Highlight or bold your answers. You purchase 1,000 shares of Spears Grinders Inc. stock for $45 per share. A year later, the stock pays a dividend of $125 per share and it sells for $49 a. Calculate your total dollar return. (Show your work. Label S. No decimal places required.) b. Calculate your total percentage return. (Show your work. Label %. Two decimal places required.) C. Do the answers to parts (a) and (b) depend on whether you sell the stock after one year of continue to hold it? UWO

Answer 1

1. Dollar retur = $5250
2. Total percentage return = 11.67%
3. The answer to part and b. Doesnot Depends upon whether you sell stock or not.

Dollar return is calculated from year to year to know the nominal difference.

Total percentage return: It's a Return for the specific period of time (both realised and unrealised).

Buy : 45 dividend & - 1.25 sell :- ug dollae retusa = (Dividend + Ending price - Beginning price) #number of shares = ( 1-25+49-45) *1000 - $5250 Total percentage Return = (49+1.25) - 45 45 X100% > 11.667. = 11-67% (approx)