Question

You purchased Butterfly Wing Corp. stock exactly one year ago at a price of $74.18 per share. Over the past year, the stock paid dividends of $2.20 per share. Today, you sold your stock and earned a total return of 14.52 percent. What was the price at which you sold the stock? A. $84.95 B. $87.07 C. $82.75 D. $90.61 E. $89.20

Answer #1

**Solution :**

Total return is the return earned on an investment for the period during which it is held.

The formula for calculating the total return is

Total Return = [ ( Sale price + Dividend earned during the period – Purchase Price ) / Purchase Price ]

As per the information given in the question is

Purchase price in Year 1 : $ 74.18

Dividend Paid = $ 2.20

Total return earned = 14.52 % = 0.1452

Sale price in Year 4 : To find ; Let the same be X ;

Applying the above values in the formula we have

0.1452 = [ ( X + 2.20 - 74.18 ) / 74.18 ]

0.1452 * 74.18 = ( X + 2.20 - 74.18 )

10.7709 = ( X – 71.9800 )

Thus X = 10.7709 + 71.9800 = $ 82.7509

= $ 82.75 ( When rounded off to two decimal places )

**Thus the Solution is Option C. $ 82.75**

**Thus the** **price** **at
which the stock is sold = $ 82.75 .**

You purchased GARP stock one year ago at a price of $63.61 per
share.Today, you sold your stock and earned a total return of 18.23
percent. If the stock paid dividens of $ 2.36 per share over the
year. What was the capital gains yield on your investment?

One year ago, you purchased a stock at a price of $43.20 per
share. The stock pays quarterly dividends of $.18 per share. Today,
the stock is selling for $45.36 per share. What is your capital
gains yield on this investment? Calculate the percentage to 2
decimal places.
One year ago, you purchased a stock at a price of $43.20 per
share. The stock pays quarterly dividends of $.18 per share. Today,
the stock is selling for $45.36 per share....

Exactly one year ago, Harv bought 500 shares of Primer Corp
stock for $20.75 per share. He plans on selling
all of the shares today at the current market price of
$22.50 per share. Over the last year, Primer Corp.
paid out dividends of $0.75 per share on its
common stock. What is Harv’s holding period return for the year on
Primer Corp. stock? Submit your answer as a percentage and round to
two decimal places.
Describe and interpret the...

You purchased 100 shares of General Motors stock at a price of
$106.82 one year ago. You sold all stocks today for $106.94. During
the year, the stock paid dividends of $5.88 per share. What is your
holding period return?
You are considering the purchase of Crown Bakery, inc. common
stock that just paid a dividend of $15.15 per share. You expect the
dividend to grow at a rate of 5.34 percent per year, indefinitely.
You estimate that a required...

One year ago, you purchased 500 shares of stock at a
cost of $9500. The stock paid an annual dividend of $2.20 per
share. Today, you sold those shares for $25.5 each. What is the
capital gains yield on this investment? What was your dividend
yield on this investment? And what is total dollar return? What is
Percentage return?

One year ago, you purchased a stock at a price of $43.20 per
share. The stock pays quarterly dividends of $.18 per share. Today,
the stock is selling for $45.36 per share. What is your capital
gain on this investment?

One year ago, you purchased a stock at a price of $58.61 per
share. Today, you sold your stock at a loss of 18.31 percent. Your
capital loss was $11.85 per share. What was the dividend yield on
this stock?
Multiple Choice
18.11%
1.97%
1.91%
2.12%
16.60%

One year ago, you purchased 380 shares of Titan Wood Products
for $65.03 per share. The stock has paid dividends of $.73 per
share over the past year and is currently priced at $70.10. What is
your total dollar return on your investment?

You purchased shares of stock one year ago at a price of $64.46
per share. During the year, you received dividend payments of $2.15
and sold the stock for $71.58 per share. If the inflation rate
during the year was 2.83 percent, what was your real return

8. You purchased shares of stock one year ago at a price of
$63.80 per share. During the year, you received dividend payments
of $2.03 and sold the stock for $70.92 per share. If the inflation
rate during the year was 2.59 percent, what was your real
return?

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 39 minutes ago

asked 42 minutes ago

asked 44 minutes ago

asked 51 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago