Shares of common stock problem

Assignment Help Financial Management

Reference no: EM13721765

One year ago, Richard purchased 40 shares of common stock for $10 per share. During the year, he received one dividend in the amount of $0.50 per share. If the stock currently is worth $9 per share, what yield did Richard earn on his investment for the year?

Reference no: EM13721765

Questions Cloud

What is the current value of the bond : A. If the current rate is 8%, what is the current value of the bond (assuming annual interest payments)?

What is the equilibrium rate of return-treasury bond : The real risk-free rate is 3.55%, inflation is expected to be 2.55% this year, and the maturity risk premium is zero. Taking account of the cross-product term, i.e., not ignoring it, what is the equilibrium rate of return on a 1-year Treasury bond?

Compensation to economic value added : As an organizational leader, would you be for or against tying your compensation to economic value added and why? What other ways could managers be compensated and motivated if not tied to value added economies?

Description of capital expenditure proposals scoring system : Worthwhile Hospital has a total capital expenditure budget for next year of five million dollars. Of this amount, three million is already committed as spending for capital assets that have already been acquired and are in place. The remaining ..

Shares of common stock problem : One year ago, Richard purchased 40 shares of common stock for $10 per share. During the year, he received one dividend in the amount of $0.50 per share. If the stock currently is worth $9 per share, what yield did Richard earn on his investment for t..

What is the future worth of this investment : Aerotron Electronics is considering the purchase of a water filtration system to assist in circuit board manufacturing. The system costs $60,000. It has an expected life of 7 years at which time its salvage value will be $7,500. Operating and mainten..

Mortgage plan problem : You are financing a 300K home with 20% down payment. The 30-year interest rate (APR) is 4.5%, and the 15-year interest rate (APR) is 3.5%. What is the difference in the monthly payment if choose 30- year and 15-year mortgage plan?

Present value of a perpetuity making quarterly payments : A business borrows $296,926 for 9 years at an annual rate of interest of 6%. If payments are annual and the loan will negatively amortize by $49,469, what will be the annual payment required? What is the present value of a perpetuity making quarterly..

What is the amount of the earnings : Kwik'n Hot Dogs is considering the installation of a new computerized pressure cooker that will cut annual operating costs by $23,000. The system will cost $39,900 to purchase and install. This system is expected to have a 4-year life and will..

User Account

All Pages