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Calculate the annual holding period return on each security

Assignment Help Financial Management
Reference no: EM131506510

Information about three securities appears below

Beginning of year price, End of year price, interest/dividend paid

stock 1: 42.50, 46.75, 1.50

Stock 2: 1.25, 1.36, 0.00

Stock 3: 1020, 1048, 41.00

A) Assuming interst and dividens are paid annually, calculate the annual holding period return on each security.

B) During the year management of stock 2 spend 10 millino, or .50 share, repurchasing 7.7 million of the companys shares. How, if at all, does this information affect calculation of the holding period return on stock 2?

Reference no: EM131506510

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