Find wandas total return on this investment

Assignment Help Financial Management
Reference no: EM132051551

Wanda Sotheby purchased 165 shares of Home Depot stock at $43 a share. One year later, she sold the stock for $55 a share. She paid her broker a commision of $43 when she purchased the stock and a commision of $50 when she sold it.

During the 12 months she owned the stock, she received $136 in dividends. Calculate Wanda's total return on this investment.

Total return $

Learning Objective: 12-01 Identify the most important features of common and preferred stock.

Reference no: EM132051551

Questions Cloud

Determining the rate of inflation : If the CPI in January of 2007 was is 202.4, and the CPI in January of 2008 was 211.1, what was the rate of inflation that year
What is the liquidity premium on the 5-year treasury : The Wall Street Journal reports that the rate on 4-year Treasury securities is 7.05 percent and the rate on 5-year Treasury securities is 7.25 percent.
What risk premium was earned by common stock investors : Given this information, what risk premium was earned by common stock investors of Walmart during 2016?
Compute the companys current e and p for given year : Under the alternative (E&P) depreciation method, the deduction would have been $80,000. Compute the company's current E&P for 2016.
Find wandas total return on this investment : During the 12 months she owned the stock, she received $136 in dividends. Calculate Wanda's total return on this investment.
Briefly discuss using the loanable funds market : Suppose that in the next federal budget, the government decides to eliminate all (government) purchases that are financed by borrowing
What are the earnings per share and price-earnings ratio : What would the earnings per share be immediately after the rights offering? What would the price-earnings ratio be immediately after the rights offering?
Develop an algebraic formula expressing : Now generalize this example. Let P be the price of the bill and r be the interest rate. Develop an algebraic formula expressing r in terms of P.
Calculate asset to debt ratio for walter and freya : Walter (54) and Freya (52) live in Zermatt, Ontario. Walter is a Ski Instructor, who works at the nearby Ski Hill in the winter and runs cycling tours.

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate the required rate of return for mudd enterprises

Calculate the required rate of return for Mudd Enterprises assuming that investors expect a 3.8% rate of inflation in the future.

  What was opportunity cost of keeping it on display rather

what was the opportunity cost of keeping it on display rather than in a bank? account? (Ignore? taxes.)

  Beta of the firm ongoing business operations

What is the beta of the firm's ongoing business operations?

  Calculate the earnings per share-market-to-book ratio

Allison & Co. and Bee, Inc. reported the following numbers (in millions) for fiscal year 2012. Allison & Co. Bee, Inc. Net income $ 625.70 $ 247.24 Shares outstanding 87.20 57.25 Stock price $ 95.59 $ 40.26 Total equity $ 1,768.30 $ 989.48. Calculate..

  Instead of perpetual cash flows from the lottery

How much should you ask to receive today in a lump sum instead of the perpetual cash flows from the lottery.

  Security percent of portfolio beta

Security Percent of portfolio Beta. Calculate the beta portfolio

  Probability distributions of expected future returns

Expected returns Stocks A and B have the following probability distributions of expected future returns.

  Stock one-year expected holding period return

An analyst forecasts that a stock's one-year expected holding period return (HPR) is 15%. What stock price does the analyst expect one year from today?

  Debt capital is lower than the cost of equity capital

In general the cost of debt capital is lower than the cost of equity capital. It might be expected that firms with high debt ratios would have a lower weighted average cost of capital. Explain at least one reason why this is not the case.

  After the corporation has paid its corresponding taxes

Consider a C corporation. The corporation earns $3.5 per share before taxes. After the corporation has paid its corresponding taxes, it will distribute 100% of its earnings to its shareholders as a dividend. The corporate tax rate is 35%, the tax rat..

  What is the project cash flow for the first year

Colsen Communications is trying to estimate the first-year cash flow for proposed project. What is the project's cash flow for the first year (t = 1)?

  Common stock-market and preferred stock

You are given the following information for Lightning Power Co. Assume the company’s tax rate is 30 percent. Debt: 6,000 7.9 percent coupon bonds outstanding, $1,000 par value, 25 years to maturity, selling for 108 percent of par; the bonds make semi..

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