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Levart [38]
2 years ago
6

You own 310 shares of stock in a firm that currently sell for $55 per share. The company has announced a dividend of $3.20 per s

hare with an ex-dividend date of May 3. Assuming no taxes, what is the value of your portfolio on May 3
Business
1 answer:
Nesterboy [21]2 years ago
8 0

Answer:

The value of your portfolio on May 3 is $16,058.

Explanation:

Since it is assumed that there is no tax, the value of a share on ex-dividend date is the current share per share minus the announced dividend per share share. Therefore, we have:

Price per share on ex-dividend date = Current share per share - Announced dividend per share share = $55 - $3.20 = $51.80

Therefore, the value of your portfolio on May 3 which is the ex-dividend date can be calculated as follows:

Portfolio value on May 3 = Number of shares owned * Price per share on ex-dividend date = 310 * $51.80 = $16,058

Therefore, the value of your portfolio on May 3 is $16,058.

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Bonds   = 24%

Shares  = 76%

Explanation:

The weight of each of the finance sources is the proportion that their market value bears to the total market value.

This is computed as follows:

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Market value of bonds= 95%× 1,000× 800= 760,000

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Bonds             = 760,000/3,160,000× 100= 24%

Shares             = 2400000/3,160,000×  100= 76%

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