What is your holding period return on this investment

Assignment Help Financial Management
Reference no: EM131348184

Four months ago, you purchased 100 shares of Lakeside Bank stock for $11.20 a share. You have received dividend payments equal to $1.89 a share. Today, you sold all of your shares for $7.72 a share. What is your holding period return on this investment?

Reference no: EM131348184

Questions Cloud

Stock pays current dividend : A stock pays a current dividend of $2.50 per share. This dividend is expected to grow at a rate of 3.0%. The historical return for the stock is 11.0%, standard deviation is 8.5%, and the beta is 0.90. The risk free rate is 2.0% and the expected marke..
What is the required return for this stock investment : The current and expected dividend for a share of stock are $1.00 and $1.05 respectively. The current price of the stock is $21.00 per share. What is the required return for this stock investment?
Estimated value of whole foods common stock : Calculate an estimated value of Whole Foods common stock using the discounted cash flow model. Provide all calculations and discuss your assumptions/model inputs. Compare with the current common stock price
Using a buy and hold strategy starting : Suppose you invested $12000 in Microsoft (MSFT): Using a Buy and Hold strategy starting January 2012. How many shares would you own and much would the stock be worth today?
What is your holding period return on this investment : Four months ago, you purchased 100 shares of Lakeside Bank stock for $11.20 a share. You have received dividend payments equal to $1.89 a share. Today, you sold all of your shares for $7.72 a share. What is your holding period return on this investme..
What is percentage price change of these bonds : Bond J has a coupon rate of 5 percent and Bond K has a coupon rate of 11 percent. Both bonds have 14 years to maturity, make semiannual payments, and have a YTM of 8 percent. If interest rates suddenly rise by 2 percent, what is the percentage price ..
Holding period rate of return on the investment : Your firm invested $2,497,700 in 310-day commercial paper today. At the end of the investment period (in 310 days) the firm will receive $2,596,100. What is the 310-day holding period rate of return on the investment? What is the effective annual rat..
Operating expenses which included depreciation expense : At the end of its third year of operations, the Sandifer manufacturing Co. had $4,507,000 in revenues, $3,319,000 in cost of goods sold, $443,000 in operating expenses which included depreciation expense of $152,000, and a tax liability equal to 34 p..
Product elasticity measures : Government is known to utilize a product's elasticity measures to set taxes and subsidies. Use this information to set policy on one of the following products:

Reviews

Write a Review

Financial Management Questions & Answers

  External rate of return from switching to reclaimed water

Suppose that Dr. Stone brewery could use recliamed municipal water waste water to make beer instead of the municipal water that is currently being used. this will help conserve limited fresh water resources and reduce the brewery's annual water bill...

  Which has a longer macaulays duration

Which has a longer Macaulay's duration: a $ 1 million face value zero coupon bond with a two- year maturity and a yield of 6 percent, or a $ 1 million face value coupon bond with a two year maturity that pays 6 percent coupon interest? Explain your r..

  What is the yield to maturity for the bond issued

To calculate the number of years until maturity, assume that it is currently January 15, 2016. The bonds have a par value of $2,000. - What is the yield to maturity for the bond issued by Xenon, Inc.?

  Compounded quarterly-required rate of return

BSW Corporation has a bond issue outstanding with an annual coupon rate of 8 percent paid quarterly and four years remaining until maturity. The par value of the bond is $1,000. Determine the fair present value of the bond if market conditions justif..

  Representing tech marketing

Assume Michael, representing Tech Marketing, went to the bank to obtain a mortgage. The bank will present an interest rate that reflects their perception of the kind of credit risk Tech Marketing would present. What four questions do you think they m..

  Two investment accounts

You have your choice of two investment accounts. Investment A is a 14-year annuity that features end-of-month $1,350 payments and has an interest rate of 7.2 percent compounded monthly. Investment B is a 6.7 percent continuously compounded lump sum i..

  Portfolio expected return-variance and standard deviation

Consider the following information on a portfolio of three stocks: State of Economy Probability of State of Economy Stock A Rate of Return Stock B Rate of Return Stock C Rate of Return Boom .12 .09 .34 .53 Normal .53 .17 .19 .27 Bust .35 .18 –.18 –.3..

  What is the smallest expected loss for your portfolio

Tyler Trucks stock has an annual return mean and standard deviation of 12 percent and 35 percent, respectively. Michael Moped Manufacturing stock has an annual return mean and standard deviation of 10.8 percent and 53 percent, respectively. What is t..

  Make floating-rate interest payment-what is net cost

Suppose you have a loan of $10,000,000 outstanding, on which you will have to make a floating-rate interest payment on Tuesday, February 23d. The interest payment is determined by the interest rate implied by the Mar 16 Eurodollar futures contract as..

  Briefly describe the business-scan the environment

For Starbucks briefly describe the business, scan the environment, and list two risks you’ve identified to implement an ERM. Describe the risks and explain how you’d treat the risks.

  What is the present value of the annuity

A 10-year annuity pays $2,700 per month, and payments are made at the end of each month. The interest rate is 11 percent compounded monthly for the first six years, and 9 percent compounded monthly thereafter. Required: What is the present value of t..

  Callable bond outstanding on the market

Fooling Company has a 10.8 percent callable bond outstanding on the market with 25 years to maturity, call protection for the next 10 years, and a call premium of $100. What is the yield to call (YTC) for this bond if the current price is 105 percent..

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