Find the expected rate of return for an investor

Reference no: EM131287362

1. Find the expected rate of return for an investor who purchases 130 shares of stocks at $33.50 per share with dividends expected to be $1.95 per share. Assume that he would sell 80 shares at $35.00.

2. A company is selling its stock at $17.95 per share and expecting it to grow by 5%. It usually distributes 50% of its earnings per share as dividends. Find the value of this stock if the earning per share is $2.15 and if an investor would like to earn a 9% yield.

Reference no: EM131287362

Questions Cloud

Some argue that retailers can be eliminated : Do you agree with this perspective?- Is it likely that consumers will make most purchases directly from manufacturers in the near future?

Calculate his investment rate of return and his capital gain : A man invested in 500 shares of a local business stock selling for $15.75 a share. A while later he sold half of his shares at $17.25.

Calculate his investment rate of return and his capital gain : A man invested in 500 shares of a local business stock selling for $15.75 a share. A while later he sold half of his shares at $17.25. Calculate his investment rate of return and his capital gain.

Principles of economic : Bade & Parkin. (2015). Essential Foundations of Economics (7th Ed.). Pearson: Boston, Mass. When we look at our economic system we have an open market economy. How does our economic system affect our ability to trade goods and services?

Find the expected rate of return for an investor : A company is selling its stock at $17.95 per share and expecting it to grow by 5%. It usually distributes 50% of its earnings per share as dividends. Find the value of this stock if the earning per share is $2.15 and if an investor would like to e..

What happens to aggregate output and the price level : Which curve shifts, and in which direction? What happens to aggregate output and the price level in each case? Is there an expansionary, contractionary, or no gap between the potential output and the actual output?

The strategic move to include a substantial offering of food : Many years ago, the corporations that sold gasoline made the strategic move to include a substantial offering of food items.- Do you think this was a prudent strategic direction for these corporations? Explain your logic.

How you would create a resume : how you would create a resume that provides you with a competitive advantage over others who may apply for a similar position.

Public savings to behave over the business cycle : How would you expect Public Savings to behave over the business cycle (assuming no fiscal or monetary policy is implemented)? Explain.

User Account

All Pages