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Paul [167]
3 years ago
11

You are considering two investment alternatives. The first is a stock that pays quarterly dividends of $0.32 per share and is tr

ading at $27.85 per share; you expect to sell the stock in six months for $31.72. The second is a stock that pays quarterly dividends of $0.67 per share and is trading at $34.98 per share; you expect to sell the stock in one year for $36.79. Which stock will provide the better annualized holding period return?The 1-year HPR for the second stock is____%. The stock that will provide the better annualized holding period return is_____.A. Stock 1 B. Stock 2
Business
1 answer:
MrMuchimi3 years ago
6 0

Answer:

The 1-year HPR for the second stock is <u>12.84</u>%. The stock that will provide the better annualized holding period return is <u>Stock 1</u>.

Explanation:

<u>For First stock </u>

Total dividend from first stock = Dividend per share * Number quarters = $0.32 * 2 = $0.64

HPR of first stock = (Total dividend from first stock + (Selling price after six months - Initial selling price per share)) / Initial selling price = ($0.64 + ($31.72 - $27.85)) / $27.85 = 0.1619, or 16.19%

Annualized holding period return of first stock = HPR of first stock * Number 6 months in a year = 16.19% * 2 = 32.38%

<u>For Second stock </u>

Total dividend from second stock = Dividend per share * Number quarters = $0.67 * 4 = $2.68

Since you expect to sell the stock in one year, we have:

Annualized holding period return of second stock = The 1-year HPR for the second stock = (Total dividend from second stock + (Selling price after six months - Initial selling price per share)) / Initial selling price = ($2.68+ ($36.79 - $34.98)) / $34.98 = 0.1284, or 12.84%

Since the Annualized holding period return of first stock of 32.38% is higher than the Annualized holding period return of second stock of 12.84%. the first stock will provide the better annualized holding period return.

The 1-year HPR for the second stock is <u>12.84</u>%. The stock that will provide the better annualized holding period return is <u>Stock 1</u>.

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3 years ago
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Industrialization is the policy of setting up several industries in a country.it is regard as the surest way to the economic development of a country. It one of the real sector of the economy which can quickly facilitate the economic development. The process of industrialization as good as it is has a negative effect on the environment through the environmental pollution, pollution is the process of releasing harmful and injurious chemicals into the environment by the the industries which may result in a serious health and environmental hazard such as cancer, heart disease, and damage to other vital organs of the body .Therefore, the people is the one paying the price of the effect of pollution on the environment where they live.

The moral issue raised by the assertion is that industrialization is capable of bringing the people out of poverty in the sense that the major causes of poverty in the society is the lack of unemployment, therefore industrialization provide jobs for the people which help in improving their standard of living., and in turn lift them out of poverty into the life of affluence. On the other hand, industrilization is capable of improving the economic development of the country. It is one of the major ways to increase the country's Gross domestic product of the country, it help in raising the national incomes of the country..it also helps in the increase in the level of productivity of the economy. It increase the level of investment in the nation,it increases savings in the economy and help in reducing the prices of goods produced in the country.

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Culture of a country can adversely affect the business

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