Find the expected rate of return for an investor

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Reference no: EM131307123

1. Find the expected rate of return for an investor who purchases 130 shares of stocks at $33.50 per share with dividends expected to be $1.95 per share. Assume that he would sell 80 shares at $35.00.

2. A company is selling its stock at $17.95 per share and expecting it to grow by 5%. It usually distributes 50% of its earnings per share as dividends. Find the value of this stock if the earning per share is $2.15 and if an investor would like to earn a 9% yield.

Reference no: EM131307123

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