Determining the rate-of-return

Assignment Help Finance Basics
Reference no: EM132953778

Company ABC pays an annual dividend of 2 per share, on a quarterly schedule. You purchase the stock today at 50/share, and hold it for half a year. If the sale price is 55, your (annualized) rate-of-return is:

a) 12%
b) 14%
c) 22%
d) 24%

Reference no: EM132953778

Questions Cloud

Foreign exchange option for the rand-won exchange : An importer located in South Africa plans to make a payment to a Korean exporter in 1 years' time of 225,000,000 Won for a shipment of cars from Korea.
Estimate the value of a european exercise put option : As an expert in pricing financial derivatives, your friend, John, approached you seeking a professional advice on the fair price of the European style call and
What the potential liability that may result is called : A customer is injured using a company's product. The potential liability that may result is called a(n)? definitely determinable liability.
Systematic risk of the underlying asset : Question2: In your own words, critically discuss how margin accounts protect investors against credit risk.
Determining the rate-of-return : Company ABC pays an annual dividend of 2 per share, on a quarterly schedule. You purchase the stock today at 50/share, and hold it for half a year.
Calculate the performance versus sales targets : Give recommendations for future promotional activities based on the outcomes so far. Calculate the performance versus sales targets
Determine great west should purchase or lease : Based on this information, determine whether Great West should purchase or lease the new float plane.
Will the project be accepted : A project that costs $2,000 to install will provide annual cash flows of $530 for the next 5 years. The firm accepts projects with payback periods of less than
How the items should be treated in the financial statement : Your manager has contacted, How the items should be treated in the financial statements of your client companies for the year ended 31 March 2021?

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the annualised usd forward bid premium

What is the annualised USD forward bid premium or discount as a percentage? Present your answer in nominal terms.

  How much could the firm raise and invest in inventory

According to company records, current loan covenants in place prohibit the current ratio from dropping below 2.30. How much could the firm raise and invest.

  Which inventory costing method should a company use when it

Which inventory costing method should a company use when it wants to minimize taxes?  Does your response depend on whether prices are rising or falling?  Explain your answer.

  Gross rent multiplier-market price

1. Debt coverage ratio - net operating income/ annual debt service 2. Gross rent multiplier -Market price/ potential gross income

  Wacc and corporate investment decisions

Students should understand corporate risk and be able to use the financial models learned in the class to evaluate and calculate a company

  Assuming that the rate of return on investment

Which of these investments are good investments, assuming that the rate of return on investment is 13% p.a. for your client.

  Compute the taxable amount of the distribution

Compute the taxable amount of the distribution

  Find the covariance of the cash flow with the market return

Find the covariance of the cash flow with the market return and its cash flow beta.

  Determine the project baseline npv and apv

You are considering a project which requires an initial investment of $15Million and which will generate cash flow of $3Million a year for ten years.

  Why do real returns matter more than nominal returns

Why is it important to focus on total returns when measuring an investment's performance?- Why do real returns matter more than nominal returns?

  Name at least three sources of bolting standards

Which of the three is most commonly used to specify bolt size (diameter) for a given application?

  What is the future value of a five year annuity

What is the future value of a five year annuity due that promises to pay you 650 each year Assume that all payments

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