User Account

All Pages

What net return did you earn on share investment

Assignment Help Finance Basics
Reference no: EM132504360

Suppose you purchase shares of a company that recently executed in IPO at the post offering market price of $32 per share, and you hold the shares for one year. You then sell your shares for $35 per share. The company does not pay dividends, and you are not subject to capital gains taxation. During this year, the return on the overall stock market was II percent. What net return did you earn on your share investment? Assess this return compared with the overall market return.

Reference no: EM132504360

Questions Cloud

What advantages would such a policy offer : $1,600 was worthless because of the bankruptcy of the client, May Flowers. Prepare the journal entry required on January 18 to write off this account.
Which project should the company select : Giant Equipment Ltd. is considering two projects to invest next year. Both projects have the same start-up costs. Project A will produce annual cash flows
Do you speak a different language at home : Do you speak a different language at home? How do you feel now that you are "away from home" what has become most important to you?
Prepare the journal entry required on january to write off : Prepare the journal entry required on 18 January to write off this account. Starlight learned that an account receivable that had originated
What net return did you earn on share investment : What net return did you earn on your share investment? Assess this return compared with the overall market return.
Find the holding-period return for a 1-year investment : A newly issued bond pays its coupons once annually. Its coupon rate is 4%, its maturity is 10 years, and its yield to maturity is 7%.
What documents will you review to check : You discover that you are expected to make a supplier payment of $656.98 tomorrow. What documents will you review to check that this money should be paid?
What is the net advantage of reworking the keyboards : Alternatively, the keyboards could be sold "as is" for $7,200. What is the net advantage or disadvantage of reworking the keyboards?
Find the yield to maturity of the bond : An 8-year debenture of $1000 face value with12% coupon is currently selling for $1,021.84. Find the yield to maturity (YTM) of this bond.

Reviews

Write a Review

Finance Basics Questions & Answers

  Appropriate to use the current wacc

When a firm is evaluating the purchase of a business that is unrelated to its current business, it is appropriate to use the current WACC of the firm that is purchasing the business?

  What its sustainable growth rate

If the Hunter Corp. has an ROE of 10 and a payout ratio of 18 percent, what is its sustainable growth rate?

  What is the effective yield to maturity

Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods.

  Southwestern bank and trust company is a nationally

southwestern bank and trust company is a nationally chartered bank that is subject to the supervision of the office of

  What will you receive at delivery

The bond you have chosen to deliver is a 9% coupon bond with 19 years, 5 months and 12 days left until maturity. What will you receive at delivery

  Dollar amount of dividends

Lee purchased a stock one year ago for $28. The stock is now worth $33, and the total return to Lee for owning the stock was 0.40. What is the dollar amount of dividends that he received for owning the stock during the year?

  Price of a zero coupon bond

Assuming semi-annual compounding, what is the price of a zero coupon bond that matures in 3 years if the market interest rate is 5.5 percent? Assume par value is $1000.

  What is the value of the payments today

If the APR is 6.72 percent compounded monthly, what is the value of the payments today?

  Foreign exchange transactions

Suppose you start with USD 100,000, and do one round of "triangular arbitrage", that is make a total of 3 foreign exchange transactions, starting from USD

  Organization of negotiation of various types of exchanges

Describe and defend best practice in the overall management and organization of negotiation of various types of exchanges.

  What would darrins adjusted basis be in personal residence

Assume Kathi died today and left her share of the personal residence to Darrin. What would Darrin's adjusted basis be in the personal residence?

  What is the current market price of the bonds

It is now five years later, and the current market rate of interest is 8.25%. What is the current market price (intrinsic value) of the bonds?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd