Calculate the total return on this investment

Assignment Help Financial Management
Reference no: EM13895484

Marie and Bob Houmas purchased 208 shares of General Electric stock for $24 a share. One year later, they sold the stock for $31 a share. They paid their broker a $132 commission when they purchased the stock and a $154 commission when they sold it. During the 12 months they owned the stock, they received $176 in dividends. Calculate the total return on this investment.

Total return        $

Hints

References

Reference no: EM13895484

Questions Cloud

Maximize share value and minimize shareholder costs : In each of the theories of capital structure the cost of equity rises as the amount of debt increases. So why don't financial managers use as little debt as possible to keep the cost of equity down? After all, isn't the goal of the firm to maximize s..
What were the dividend yield and the capital gains yield : Suppose a stock had an initial price of $80 per share, paid a dividend of $.60 per share during the year, and had an ending share price of $72. Compute the percentage total return. What were the dividend yield and the capital gains yield?
What is the current value of the annuity : A five-year annuity of ten $8,000 semiannual payments will begin 9 years from now, with the first payment coming 9.5 years from now. If the discount rate is 8 percent compounded monthly, what is the value of this annuity five years from now? What is ..
Saving for the college education of your two children : You are saving for the college education of your two children. They are two years apart in age, one will begin college 15 years from today and the other will begin 17 years from today. You estimate your children’s college expenses to be $35,000 per y..
Calculate the total return on this investment : Marie and Bob Houmas purchased 208 shares of General Electric stock for $24 a share. One year later, they sold the stock for $31 a share. They paid their broker a $132 commission when they purchased the stock and a $154 commission when they sold it. ..
Provide a detailed rationalization and conclusion : The expected findings and summary should address the significance of the study and provide a detailed rationalization and conclusion, using appropriate references from the relevant literature.
Define a strategic management plan using swot analysis : Create a SWOT analysis. Define a strategic management plan, using your SWOT analysis. Identify the (internal) strengths of the organization structure
Structure of authority in a probation department : What are some of the types of authority that you might delegate to the various members of your staff? Explain the rationale for each delegation. What are some of the types of authority that you might delegate to the probation officers in your dep..
What will your monthly payments be : Your firm has taken out a $514,000 loan with 8.4% apr (compounded monthly) for some commercial property. as is common in commercial real estate the loan is a 5 year loan based on 15 year amortization. What will your monthly payments be?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the value of the long forward contract

A 2-year long forward contract on a non-dividend-paying stock is entered into when the stock price is $139 and the risk-free interest rate is 10.3% per annum with continuous compounding. 1 year later, the price of the stock is $146 and the risk-free ..

  Tax rate would investor be indifferent between two bonds

Corporate bonds issued by Johnson Corporation currently yield 12%. Municipal bonds of equal risk currently yield 7%. At what tax rate would an investor be indifferent between these two bonds?

  Self-employed person deposits

A self-employed person deposits $1,250 annually in a retirement account that earns 5.5%. What will be the account balance at age 62 if the savings program starts when the individual is age 50?

  Biggest environmental challenges of the future

Explain in detail some of the biggest environmental challenges of the future for healthcare financial managers and provide an example of a financial report and then explain in detail the steps in the financial analysis process.

  Which is low by historical standards

Bay City Mining, Inc. has a price of $20 a share, outstanding shares of 2.5 million, retained earnings of $1 million dollars, and a dividend yield of 2 percent. It has a price-earnings ratio of a. 50, which is low by historical standards. b. 25, whic..

  Assume semi-annual coupon payments

Assume semi-annual coupon payments. Calculate the price of this bond if the YTM is 9.47%

  To what extent each donation is deductible on her schedule a

Diane Bauman, a professional artist with AGI in excess of $75,000, made the following donations. Determine to what extent each donation is deductible on her Schedule A. a. $2,000 cash to the First Methodist Church of Chicago. b. $50 cash to a homeles..

  Evaluate the proposals for expansion

Prepare the journal entry to reflect the initial $86,000 investment and evaluate the three proposals for expansion, providing the pros and cons of each option

  What happened to the following traditional investment banks

Define what happened to the following traditional investment banks in 2008-2009. Goldman Sachs Bear Stearns Morgan Stanley Lehman Brothers Merrill Lynch 2.

  Total cost for the job on its job cost sheet would be

The following data have been recorded for recently completed Job 323 on its job cost sheet. Direct materials cost was $2,260. A total of 37 direct labor-hours and 141 machine-hours were worked on the job. The direct labor wage rate is $13 per labor-h..

  Internal cash flow and firm must issur shares of stock

Simpkins Corporation is expanding rapidly, and it does not pay any dividends because it currently needs to retain all of its earnings. However, investors expect Simpkins to begin paying dividends, with the first dividend of $1.00 coming 3 years from ..

  Present value of a single payment

Present Value of a Single Payment- What is the present value of a security that will pay $25,000 in 20 years if securities of equal risk pay 8% annually?

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