Calculate investor realized percentage holding period return

Assignment Help Financial Management
Reference no: EM13972585

An investor bought 100 shares of Venus Corporation common stock 1 year ago for $40 per share. She just sold the shares for $44 each, and during the year, she received four quarterly dividend checks for $40 each. She expects the price of the Venus shares to fall to about $38 over the next year. Calculate the investor’s realized percentage holding period return.

Reference no: EM13972585

Questions Cloud

Write a detailed personal account of a significant moment : For our first essay, you will write a detailed personal account of a significant moment in your life that involved communication.
What is the level of required new funds : BHS Inc. determines that sales will rise from $300,000 to $500,000 next year. Spontaneous assets are 70% of sales and spontaneous liabilities are 30% of sales. BHS has a 10% profit margin and a 40% dividend payout ratio. What is the level of required..
Review the positions of the critics in wheatley : As with Jupiter Hammon, critics are divided over Wheatley being a "protest poet" or not. Review the positions of the critics in Wheatley's biography in your text .  After reading the above poem, with which side do you agree? Why? Give specific exampl..
Define public service culture and explain : Define public service culture and explain if public service motives are exclusive to the public sector AND Explain why collaboration is important for effective public management in the 21st century
Calculate investor realized percentage holding period return : An investor bought 100 shares of Venus Corporation common stock 1 year ago for $40 per share. She just sold the shares for $44 each, and during the year, she received four quarterly dividend checks for $40 each. She expects the price of the Venus sha..
Research a company that is in the franchise business : Briefly describe the company’s franchise structure which you researched. Suggest one (1) way in which the company could improve its franchise structure to make it more attractive to potential customers. Outline a fraud prevention plan for a retail or..
What is the percentage change in the price of bond sam : Both Bond Sam and Bond Dave have 6.5 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has 3 years to maturity, whereas Bond Dave has 20 years to maturity. If interest rates suddenly rise by 2 percent, what is the perce..
What is the npv at a discount rate : What is the NPV at a discount rate of 23 percent? What is the NPV at a discount rate of 18 percent?
Compute the IRR for this project : Light Sweet Petroleum Inc., is trying to evaluate a generation project with the following cash flows: Compute the IRR for this project. How many IRRs are there? Using the IRR decision rule, should the company accept the project? What’s going on here?

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate the net present worth of money

Portray this in a cash flow diagram time line and with an 11.25% borrowed interest rate, calculate the net present worth of money.

  What is the net amount of interest paid

A 20-year, $200,000 loan at a nominal annual interest rate of 12% convertible monthly is being paid off via the sinking fund method. The nominal annual interest rate earned on the sinking fund is 9% convertible monthly. What is the net amount of inte..

  Explain what is the total opportunity cost for a month

The interest rate on marketable securities is 8% per annum. There is a constant rate of cash disbursement and no cash receipts during the month. What is the total opportunity cost for a month based on the firm's current practice?

  Cost of preferred stock and cost of common stock

Shi Importers’ balance sheet shows $300 million in debt, $50 million in preferred stock, and $650 million in total common equity, which is its target capital structure. Shi’s tax rate is 40%, cost of debt is 6%, cost of preferred stock is 5.8% and co..

  Forward rate be to prevent arbitrage

Suppose the spot and six-month forward rates on the South Korean won are SKW 1,304.98 and SKW 1,314.82, respectively. The annual risk-free rate in the United States is 3 percent, and the annual risk-free rate in South Korea is 6 percent. What must th..

  Expense ratio-dividend ratio-combined ratio-operating ratio

National Property Casualty has $9,500,000 in premiums on its auto insurance line. The line’s losses amount to $6,245,900, expenses are $2,906,430, and dividends are $189,650. The insurer earns $397,110 in the investment of its premiums. Calculate the..

  Year-end the yield curve will be flat

One-year bonds yield 7%, two-year bonds yield 8%, three-year bonds and greater maturity bonds all yield 9%. You are choosing between one-, two-, and three-year maturity bonds all paying annual coupons of 8%, once a year. Which bond should you buy if ..

  New depositor opens

When a new depositor opens a $5,000 CD at Melvin's Bank, its assets ________ and its liabilities _____

  Calculate the firms sales and ROA

Grossman Enterprises has an equity multiplier of 3.08 times, total assets of $1,596,000, an ROE of 15.10 percent, and a total asset turnover ratio of 3.15 times. Calculate the firm’s sales and ROA.

  What are the financial markets

What are the financial markets? How do financial markets contribute to the overall functioning of the economy?

  After-tax cash flows

Find the PI. Cost of capital is 10.2%. The initial outlay is $256, 900. The following after-tax cash flows:

  Determine that upon retirement

Jack and Jill determine that upon retirement, they will need to withdraw $70,000 annually at the end of each year for the next thirty years. They know that they can earn 4% each year on their investment. How much will Jack and Jill need in their reti..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd