Calculate the income-capital gain-total return

Assignment Help Financial Management
Reference no: EM131026179

Assuming you purchased a share of stock for $50 one year ago, sold it today for $60, and during the year received 3 dividend payments totaling $2.70, calculate the following. (a) Income. (b) Capital gain (or loss). (c) total return (1) in dollars (2) as a percentage on the initial investment.

Reference no: EM131026179

Questions Cloud

Find the accrued interest-calculate the dirty price : You purchase a corporate bond with a settlement date on December 15 with a face value of $1,000 and a coupon rate of 83/4%, that has a listed price of 102:12, and that pays interest semi-annually on March 15 and September 15. How much must you pay? a..
Assume a market index represents the common factor : Assume a market index represents the common factor and all stocks in the economy have a beta of 1. Firm-specific returns all have a standard deviation of 39%. Suppose an analyst studies 20 stocks and finds that one-half have an alpha of 3.3%, and one..
Find value of k that makes probability density function : Find the value of k that makes this function a probability density function. Find P(Y1 ≥ 3Y2). That is, find the probability that the cleaning device reduces the amount of pollutant by one-third or more.
Diversification benefits in term of portfolio risk reduction : Suppose we have two assets, A and B. What correlation levels between the two assets will yield diversification benefits in terms of portfolio risk reduction? At what correlation level will there be no diversification benefits in terms of portfolio ri..
Calculate the income-capital gain-total return : Assuming you purchased a share of stock for $50 one year ago, sold it today for $60, and during the year received 3 dividend payments totaling $2.70, calculate the following. (a) Income. (b) Capital gain (or loss). (c) total return (1) in dollars (2)..
What would happen if short and long-term rates were reversed : Guardian Inc. is trying to develop an asset-financing plan. The firm has $400,000 in temporary current assets and $300,000 in permanent current assets. Guardian also has $500,000 in fixed assets. Assume a tax rate of 40 percent. What would happen if ..
Concept of manifest destiny : What if you were a young Cherokee living in North Alabama in 1830. Your father died serving with General Jackson in the Creek War. How would you feel about the concept of Manifest Destiny and how would it affect your reaction to the Indian Removal..
Have you chosen most effective type of argument for position : Have you chosen the most effective type of argument for your position? Having considered a strong objection, are you still persuaded that your conclusion is correct?
Question regarding the beginning of humanity : Does Art Matter? Does it have any real impact, meaning, resonance, or any affect in your life, or anyone's - back to the beginning of humanity?

Reviews

Write a Review

Financial Management Questions & Answers

  This will be an annuity of cash flows

What is the present value of $2,525 per year, at a discount rate of 8%, if the first payment is received 6 years from now and the last payment is received 27 years from now? No cash flows will be received for the first 6 years. This will be an annuit..

  What was its net cash flow from operating activity

The Pitt Stop generated net income of $1,250 and paid dividends of $250. Accounts payable fell by $100, accounts receivable increased by $75, inventory increased by $60, depreciation expense was $25, and net fixed assets decreased by $15. There was n..

  Calculate the time required to repay the loan

Calculate the time required to repay the loan, in years and months (at the new interest rate) if the loan instalment remains unaltered ($4,510.11). (g) In part (f), what will be the amount of the final monthly repayment?

  What is the remaining balance

My small business recently sent an invoice for consulting fees, of $8,000 to a client company on Dec 20, 2012. The terms were 2/10, 1.5/15, 1/30, n/60. The client sent a partial payment of $2,500.00 on January 5, 2013. What is the remaining balance?

  Representative lcoe values for electricity from wind-solar

Find the levelized cost of electricity in $/kWh for a new natural gas fired power plant that has an initial capital cost of $700 million, an expected lifetime of 35 years, and will produce 1.2 billion kWh/year of electricity. Assume there will be no ..

  Shopping for a mortgage

Julie Magardino is shopping for a mortgage. She needs to borrow $350,000. Bank of America’s rate for a 30-year fixed rate loan is 4.50% while Wells Fargo is offering her a rate of 4.67%. What will her respective monthly payments be with both lenders?..

  The current yield on santoss outstanding bonds

Santos energy has 9.5% annual coupon bonds outstanding with 15 years left until maturity. The bonds have a face value (FV) of $1,000 and their current market price (PV) is $1,111.76. what is the YTM on Santos’s bonds? What is the current yield on San..

  Receivables investment

Medwig Corporation has a DSO of 27 days. The company averages $8,750 in credit sales each day. What is the company's average accounts receivable? Round your answer to the nearest dollar.

  A bill is mailed to a client for services rendered

A bill is mailed to a client for services rendered. it will be paid in the following accounting period. Which of the following would be true as a result of mailing the bill to the client?

  Machine is being depreciated over ten years for tax purposes

Hyte Corporation buys a new machine for $110,000 at the beginning of 2012, and takes a full year’s depreciation in 2012. The machine is being depreciated over ten years for tax purposes. The corporation’s tax rate is 40%. What is the effect of this p..

  Grow by maintaining a constant mix of debt and equity

The estimate of how quickly a firm may grow by maintaining a constant mix of debt and equity is called:

  Stages of product life cycle aide in decision making process

A company invests in capital assets for a variety of reasons. Typically obsolescence, need for additional capacity and stages of a product life cycle aide in the decision making process for capital purchases. If a company has surplus cash or assets t..

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