What is your effective annual rate of return

Assignment Help Finance Basics
Reference no: EM13286425

Calculating returns: now suppose the call money rate is 6 percent and your broker charges you a spread of 1.25 percent over thus rate. You hold the stock for six months and sell at a price of $53 per share. The company paid a dividend of $.25 per share the day before you sold your stock. What is your total dollar return from this investment? What is your effective annual rate of return?

Reference no: EM13286425

Questions Cloud

Draw state diagram for fsm with no inputs and three outputs : Draw a state diagram for an FSM (Moore machine) with no inputs and three outputs x, y, and z, where xyz should always exhibit the following sequence: 000, 001, 010, 100, repeat. Make 000 as the initial state.
What is the net present value of the refunding : Today15 year five percnt seminannual payment bonds can be sold at par but foltation costs on this issue would be two percent. what is the net present value of the refunding.
Develop both the moore and mealy machines for an fsm : Draw a state diagram for an FSM that has an input X and an output Y. Whenever X changes from 0 to 1, Y should become 1 for two clock cycles and then return to 0, even if X is still 1. Develop both the Moore and Mealy machines.
Find the components of the crafts acceleration : On a spacecraft, two engines are turned on for 730 s at a moment when the velocity of the craft has x and y components of velocity v0x = 4040 m/s, Find the x and y components of the craft's acceleration
What is your effective annual rate of return : The company paid a dividend of $.25 per share the day before you sold your stock. What is your total dollar return from this investment? What is your effective annual rate of return?
Determine what is the net electric flux through the surface : A point charge of 1.8mC is at the centre of a cubical Gaussain surface having each side 50cm. What is the net electric flux through the surface
Find the force due to radiation pressure : The mirrors used in a particular type of laser are 99.99% reflecting. What is the force due to radiation pressure on one of the mirrors
Calculating annuities are planning to save for retirement : How much can you withdraw each month from your account assuming a 25-year withdrawal period?
Find the resistance and the inductance of the coil : The current in a solenoid is 5amps when it is connected to a 24v battery and 1.2amps when it is connected to a 24v, 60 Hz alternating current power source. Find the resistance and the inductance of the coil.

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the ear

You are looking at a one-year loan of $16,000. The interest rate on a one-year loan is quoted as 11.7 percent plus two points. What is the EAR?

  Find the impact of changes in the market return

A company wants to assess the impact of changes in the market return on an assess that has a beta of 1.20

  What is the present value of this business opportunity

If $9,000 is invested in a certain business at the start of the year, the investor will receive $2,700 at the end of each of the next four years. What is the present value of this business opportunity if the interest rate is 7% per year?

  Principle and rules based accounting standard

Please identify what accounting standard is the UK and United State using at the moment. Explain what is the difference between principle based accounting standard and rules based accounting standard.

  Managing the firms liabilities

Financial managers evaluating decision options or potential actions must consider and the financial manager may be responsible for any of the following;

  Define each part of a financial plan

Define each part of a financial plan and discuss the importance of these components in managerial decision making.

  The most reasonable estimation of insurance need?

Which of these four methods would result in the most reasonable estimation of insurance need?

  Calculate the investments geometric return

Calculate the investments geometric return (in other words, the annual return over the 5 years you owned it)

  Compare the eective annual rate on these investments

Here are some alternative investments you are considering for one year. (i) Bank A promises to pay 8% on your deposit compounded annually. (ii) Bank B promises to pay 8% on your deposit compounded daily. Compare the eective annual rate (EAR) on..

  Firms business risk

When examining a Company financial structure, would you be concerned with the firm's business risk? Why or why not?

  Find the company weighted average cost of capital

The company's cost of capital is the cost of debt is 4.61, the cost of common equity is 5.23, and cost of preferred equity is 6.67. What is the company's weighted average cost of capital?

  Calculating after-tax salvage value

A project will produce an operating cash flow of $14,600 a year for 8 years. The initial fixed asset investment in the project will be $48,900.

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