Calculation of the holding period return on stock

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Reference no: EM133205089

Problem:

Stock/Bond

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

Bond 1

$1,020

$1,048

$ 41.00

During the year, management of Stock 2 spent $10M, or $0.50 a share, repurchasing  7.7 million of the company's shares. How, if at all, does this information affect calculation of the holding period return on Stock 2?

Reference no: EM133205089

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