Would he have made a rate of return

Assignment Help Financial Management
Reference no: EM132062593

About a year ago, Ramon Navarrete bought some shares in the Saphire Lake Mutual Fund. He bought the fund at $25.00 a share, and it now trades at $26.00. Last year the fund paid dividends of 60 cents a share and had capital gains distributions of $2.70 a share.

1. Using the approximate yield formula, what rate of return did Ramon earn on his investment? Round the answer to two decimal places.

2. Repeat the calculation using a handheld financial calculator. Round the answer to two decimal places.

3. Would he have made a 20% rate of return if the stock had risen to $30 a share?

Reference no: EM132062593

Questions Cloud

Calculate the mass required to make 250 ml : A student was instructed to prepare 250 mL of a 0.500 mol/L solution potassium permanganate. What is the correct order for this
Calculate the return on equity in the given years : What is the return on equity in 2015? What is the price-earnings ratio in 2015 if the stock price is $25 per share?
Why are 2 valence electrons accounted : Q1. Why are 2 valence electrons accounted for in the equation in step 4 above?
Calculate the molar concentration of a saturated solution : The solubility of aluminium nitrate is at 20 degrees celsius is 73.9 g/100 ml. Calculate the molar concentration of a saturated solution of aluminum nitrate
Would he have made a rate of return : Repeat the calculation using a handheld financial calculator. Round the answer to two decimal places.
Compute the standard deviation of returns for stock a : What is the average return of a portfolio that has 45% invested in stock A, 35% invested in stock B and the rest invested in stock C?
What is your portfolio return : If you have a portfolio made up of 30 percent Yum Brands, 40 percent Raytheon, and 30 percent Coca-Cola, what is your portfolio return?
Formula for anti-fungal shampoo : A formula for anti-fungal shampoo contains 2.0% W/V ketoconazole. How many litres of shampoo could be made with 42 g of ketoconazole?
What will be the total dollar change in inventory : If that happens, what will be the total dollar change in inventory between this year and next year?

Reviews

Write a Review

Financial Management Questions & Answers

  Negotiating to purchase exclusive rights to manufacture

Simes? Innovations, Inc., is negotiating to purchase exclusive rights to manufacture and market a?solar-powered toy car. The? car's inventor has offered Simes the choice of either a? one-time payment of ?$2,200,000 today or a series of 8 ?year-end pa..

  What is the yield to maturity at current market price

Harrimon Industries bonds have 6 years left to maturity. What is the yield to maturity at a current market price of $779?

  What is the par value of the common stock

The firm issued 490,000 shares of common stock. What is the par value of the common stock?

  How much does justin need to borrow in present value terms

What is Justin’s permanent income? How much does Justin need to borrow in present value terms?

  Short-term securities prices and interest rates

Suppose the U.S. Treasury issued $50 billion of short-term securities and sold them to the public. Other things held constant, what would be the most likely effect on short-term securities' prices and interest rates?

  Maker of telecommunications equipment

FarCry Industries, a maker of telecommunications equipment, has 3 million shares of common stock outstanding, 1 million shares of preferred stock outstanding, and 10,000 bonds. Suppose the common shares sell for $28 per share, the preferred shares se..

  What was capital gain of the tips in percentage

What was the capital gain of the TIPS in percentage? What was the capital gain of the TIPS in dollars?

  Initial investment associated with capital expenditure

Which of the following basic variables must be considered in determining the initial investment associated with a capital expenditure?

  Defined division operating income divided by division assets

calculating the division's return on investment (ROI), defined as division operating income divided by division assets.

  What is the average rate of return for stock a

What is the average rate of return for stock A? - What is the average rate of return for stock B? - How much would each dollar invested today in stock A earn in 10 years?

  What is the stock value per share

If Scampini has 65 million shares of stock outstanding, what is the stock's value per share?

  Compare the percentage gains and losses from investment

Compare the percentage gains and losses from a $97,500 investment in stock versus the option in 90 days for stock prices

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