What is your rate of return

Assignment Help Financial Management
Reference no: EM13953902

Assume that on 1/1/12 you purchased an investment for $3000. The investment pays you $200 on 12/31 of every year that you hold the security. On 1/1/17 you sell the investment for $3500. What is your rate of return? Round your answer to the nearest tenth of a percent (e.g. 33.3%).

Reference no: EM13953902

Questions Cloud

What is your initial cash flow : You hold a portfolio of stocks with a value of $1,000,000. You expect that you will be selling the stocks in the portfolio in one year. You are considering hedging your market risk by using the 1-yr S&P 500 Index Future. What side of the futures posi..
Will increase the value of a put option : Which of the following changes, when considered individually, will increase the value of a put option?
Projects unit sales for new seven-octave voice emulation : Aguilera Acoustics, Inc., (AAI) projects unit sales for a new seven-octave voice emulation implant as follows: Year Unit Sales 1 114,500 2 133,500 3 121,500 4 104,500 5 90,500 Production of the implants will require $1,840,000 in net working capital ..
Publicly traded health organizations : This discussion is designed to assist you in your preparation for the paper. Identify two publicly traded health organizations in the same segment and consider the following for your post: Discuss their financial performance over the past 3 years of ..
What is your rate of return : Assume that on 1/1/12 you purchased an investment for $3000. The investment pays you $200 on 12/31 of every year that you hold the security. On 1/1/17 you sell the investment for $3500. What is your rate of return? Round your answer to the nearest te..
All the equity used is from retained earnings : Sorensen Systems Inc. is expected to pay a $2.50 dividend at year end (D1 = $2.50), the dividend is expected to grow at a constant rate of 5.50% a year, and the common stock currently sells for $80.00 a share. The before-tax cost of debt is 7.50%, an..
Immediate impacts on operating income or operating cash flow : If a firm reduced its allowance for bad debts from 2.5% to 1.5%, would there be any immediate impacts on operating income or operating cash flows? A firm has been generating a stable ROE despite a steadily falling operating income. Give one reason wh..
Break even analysis utilizes both current-projected figures : Break even analysis utilizes both current and projected figures. in a rapidly changing economy, there are many individuals who are finding that their break even analyses were incorrect. What could be done to minimize errors in projections?
What is the future value of this investment : Imagine homer simpson invested 100000 5 years ago at a 14% annual interest rate. if he invested an additional 2200 a year at the beginning of each year for 10 years at the same 14 % annual rate, how much money will homer have 10 years from now? if ho..

Reviews

Write a Review

Financial Management Questions & Answers

  Estimates its expansion cost

MBM estimates its expansion cost at $18.63 million and wants to fully fund upfront. Management has decided to save $1.1 million a quarter for this purpose. The firm earns 6.25 percent, compounded quarterly, on its savings. How long does the firm have..

  What is the value of quick ratio

Clyde’s Smoke Shop has cash of $750, accounts receivable of $150, inventory of $300, and accounts payable of $600. What is the value of Clyde’s quick ratio?

  Generate a cash based income statement

Suppose that you generate a cash based income statement and determine that CFO equals 75 percent of cash dividends paid and payments on current maturities of long term debt. What is the significance of this in terms of the firm's cash flow position?

  Use the geometric average

Suppose 1-year T-bills currently yield 7.00% and the future inflation rate is expected to be constant at 3.20% per year. What is the real risk-free rate of return, r*? The cross-product term should be considered, i.e., if averaging is required, use t..

  The fixed asset will be depreciated straight-line to zero

Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.82 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be w..

  Which would reduce the amount of additional funds needed

Carter Corporation's sales are expected to increase from $5 million in 2012 to $6 million in 2013, or by 20%. Its assets totaled $2 million at the end of 2012. Carter is at full capacity, so its assets must grow in proportion to projected sales. Unde..

  Assume market interest rates have risen substantially

Assume market interest rates have risen substantially in the 5 years since an investor purchased Treasury bonds that were offering a 6% return over their 15-year life. If the investor sells now he or she is likely to realize a total return that is:

  What is the function of the international money markets

What is the function of the international money markets? Briefly describe the rea- sons for the development and growth of the European money market.

  Make annual payments into a savings plan

A couple will retire in 50 years. They plan to spend about $30,000 a year in retirement, which should last about 25 years. They believe that they can earn 8% interest on retirement savings. If they make annual payments into a savings plan, how much w..

  Distinguish between an open-end fund and a closed-end fund

Distinguish between an open-end fund and a closed-end fund.

  Dividend reinvestment plan

Pam owns 50 shares of Floor Mart Inc. The firm has a semi annual dividend policy of $0.75 per share or the option to reinvest the cash dividends into additional shares of company stock. If the stock is selling for $25.00 per share ex-dividend, how ma..

  Find the internal growth rate and sustainable growth rate

Find internal growth rate. sustainable growth rate. sustainable growth rate if it pays out 42% of its net income as a dividend.

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