User Account

All Pages

Calculate the annualised holding period return

Assignment Help Accounting Basics
Reference no: EM132737547

Question - Investment A expects to pay quarterly dividends of $0.65 per share and is currently trading at $32.30 per share. You anticipate that you could sell the share for $35 in six months time.

Investment B expects to pay half yearly dividends of $4.20 and is currently trading at $22.30 per share. You anticipate that you could sell this share for $23.95 in 12 months time

Required -

a) Calculate the annualised holding period return for each investment

b) Assuming each of these investments carries the same degree of risk, which would you decide to invest in and why?

Reference no: EM132737547

Questions Cloud

Make a statement of comprehensive income in two separate : Make a statement of comprehensive income in two separate statements. Ignore taxes and earnings per share (EPS). Oriole Ltd. follows IFRS.
Which of the statements is correct with respect to the tax : Which of the statements is correct with respect to the tax consequences that would arise in connection with the proposed sale? of the building
Compute the current ratio based on Walker balance sheet : Freight-in of $3,190 was debited to advertising expense on December 28, 2019. Compute the current ratio based on Walker balance sheet
What earned income for rrsp purpose for the year : $12,000, received an inheritance of $50,000 and had a net rental loss of $2,000. His Earned Income for RRSP purpose for the year 2019 would be
Calculate the annualised holding period return : Investment B expects to pay half yearly dividends of $4.20 and is currently trading at $22.30 per share. Calculate the annualised holding period return
Discuss the role of databases and database management system : Discuss the role of databases and database management systems in the context of enterprise systems. Also, include a discussion on the components
What is the impact of the financial measures : What is the impact of the financial measures that the company will take in light of the Covid-19 pandemic on preparing financial statements
Make the entries for the declaration and issuance : Sunland Corporation has 53,000 shares of $13 par value common stock outstanding. Make the entries for the declaration and issuance of the stock dividend
What will be the realized compound yield to maturity : A two year bond with par value of R1000, making annual coupon payments of R110 is priced at R1000. What is the yield to maturity of the bond?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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