1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
sleet_krkn [62]
3 years ago
6

Today, you buy one share of stock costing $50. The stock pays a $2 dividend one year from now. Also one year from now, you purch

ase a second share of stock for $53. Two years from now you collect a $2 per share dividend and sell both shares of stock for $54 a share. What is your dollar-weighted return?
Business
1 answer:
grin007 [14]3 years ago
3 0

Answer:

weighted return = 0.0781 = 7.81%

Explanation:

Given data:

stock cost is $50

dividend on stock is $2

cost of new stock $53

share dividend cost from 2 year now = $2

total selling cost for both stock is $54

holding period return for 1st year

HPR_1 = \frac{(53 - 50) + 2}{50} = 0.10 = 10%

HPR_2 =\frac{(53 - 50) + 2*2}{2*53} = 0.0566 = 5.66%

weighted return = [(1 +HPR_1) *(1 +HPR_2)]^{1/2} -1

weighted return = [(1+ 0.10) *(1+0.0566)]^{1/2} -1

weighted return = 0.0781 = 7.81%

You might be interested in
If I were a salesmen, how could I sell 10 boxes of burritos?
Alja [10]
You can make posters and signs that can show ppl you sell them or get a food truck !
6 0
2 years ago
Your credibility is your capability of being believed because you are reliable and worthy of confidence.
QveST [7]

yes, agreed and proven.

7 0
2 years ago
Find the EAR in each of the following cases (Use 365 days a year. Do not round intermediate calculations and enter your answers
postnew [5]

Answer and Explanation:

The computation of the effective annual rate in each of the following cases are

1.

Effective annual rate = [(1+annual percentage rate ÷ period)^period]- 1

= (1 +0 .09 ÷ 4)^4 - 1

= 9.31%

2.

Effective annual rate = [(1+annual percentage rate ÷ period)^period]- 1

= (1 + 0.16  ÷  12)^12-1

= 17.23%

3.

Effective annual rate = [(1+annual percentage rate ÷ period)^period]- 1

= (1 + 0.12 ÷ 365)^365-1

= 12.75%

4 .

Effective annual rate = [(e)^Annual percentage rate]-1

e=2.71828

So,

=[(2.71828)^0.11]-1

= 11.63%

4 0
3 years ago
Leonard, inc., which uses a volume-based cost system, produces cat condos that sell for $126 each. direct materials cost $10 per
Juli2301 [7.4K]

The gross profit is $146.75

3 0
3 years ago
Billboard advertising is most effective for __________ advertising.
kakasveta [241]
"companies" advertising
5 0
3 years ago
Other questions:
  • Ms. Benoit is a self-employed architect who earns $300,000 annual taxable income. For the past several years, her tax rate on th
    8·1 answer
  • In Maricaibo, incandescent lightbulbs are being replaced with fluorescent lightbulbs, which have fewer negative effects and many
    14·2 answers
  • ​if test takers do not believe that items on a test measure what they are supposed to measure then the test probably lacks:
    7·1 answer
  • How did collis p huntington spend his money business wise?
    10·1 answer
  • You can do financial transactions through mobile banking using a A.Smartphone B. Home phone C.Smart Card D.Computer
    15·1 answer
  • How many kingdoms are in the modern system of classification?<br>02<br>06<br>0 8<br>O 15<br>​
    15·2 answers
  • Environmental scanning would be MOST important for which of the following organizations? a. A manufacturer of household linens b
    6·1 answer
  • Bob Jensen Inc. purchased a $650,000 machine to manufacture specialty taps for electrical equipment. Jensen expects to sell all
    15·1 answer
  • Milner Company is working on two job orders. The job cost sheets show the following.
    11·1 answer
  • The ____ team is responsible for providing any needed supplies, space, materials, food, services, or facilities needed at the pr
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!