Question

Tony bought 200 shares of Big Petroleum Company for $95 per share and paid a commission of $60. He sold the stock five years later for $120 per share and paid $75 commission. While he held the stock, it paid (in total) dividends of $5.50 per share. What was Tony s annual holding period yield?

Answer #1

Ans 31.30%

Tony's annual holding period yield is 31.30%

Hiral bought 10,000 shares of LuLu at $40 per share, with an
initial margin of 60%. He was charged 12% margin interest annually.
Two years later he sold the stock for $80 per share. LuLu declared
and paid a special dividend of $4 per share during the period Hiral
held the stock. What was Hiral's holding period return?
100%
150%
167%
183%

Josh purchased 200 shares of HAR stock at $25.30 per share and
sold it 9 months later for $27.20. HAR does not pay a dividend. At
the same time, he bought 500 shares of WIG for $9.15 a share. He
sold WIG for $9.65 one year later. During the year, WIG paid 4
quarterly dividends of $0.07 each. The most useful way to compare
the holding period returns on these stocks is to
A.
Divide the 1 year return on...

You bought 200 shares of OXY at $40.04 and then you bought 300
shares of OXY at 36.64 per share. Your overall dividend (annual)
yield on this holding is 8%. Therefore, the Quarterly dividend paid
per OXY share is

Not long ago, Jack Edwards bought 200 shares of Almost Anything
Inc. at $45 per share; he bought the stock on margin of 60%. The
stock is now trading at $60 per share, and the Federal Reserve has
recently lowered initial margin requirements to 50%. Jack now wants
to do a little pyrimiding and buy another 300 shares of the stock.
What is the minimum amount of equity that he'll have to put up in
this transaction?

An investor purchased 400 shares of a company at $30 per share.
The stock was bought on 65 percent margin (35 percent of the
purchase amount was borrowed). One month later, the investor had to
pay interest on the amount borrowed at a rate of 3 percent per
month. At that time, the investor received a dividend of $0.50 per
share. Immediately after receiving the dividend, he sold the shares
at $35 per share. The investor paid total commissions of...

An investor purchased 400 shares of a company at $30 per share.
The stock was bought on 65 percent margin (35 percent of the
purchase amount was borrowed). One month later, the investor had to
pay interest on the amount borrowed at a rate of 3 percent per
month. At that time, the investor received a dividend of $0.50 per
share. Immediately after receiving the dividend, he sold the shares
at $35 per share. The investor paid total commissions of...

An investor purchased 300 shares of a company at $25 per share.
The stock was bought on 70 percent margin (30 percent of the
purchase amount was borrowed). One month later, the investor had to
pay interest on the amount borrowed at a rate of 3 percent per
month. At that time, the investor received a dividend of $0.6 per
share. Immediately after receiving the dividend, he sold the shares
at $38 per share. The investor paid total commissions of...

A year ago, an investor bought 400 shares of a mutual fund at
$8.51 per share. Over the past year, the fund has paid dividends
of $0.83 per share and had a capital gains distribution of $0.69
per share.
a. Find the investor's holding period return, given that this
no-load fund now has a net asset value of $9.28.
b. Find the holding period return, assuming all the dividends
and capital gains distributions are reinvested into additional
shares of the...

14- Jeff bought 100 shares of stock for $30.00 per share
on 70% margin. Assume Jeff holds the stock for one year and that
his interest costs will be $45 over the holding period. Jeff also
received dividends amounting to $0.30 per share. Ignoring
commissions, what is his percentage return on invested capital if
he sells the stock for $34 a share?

A year ago, an investor bought 600 shares of a mutual fund at
$8.56 per share. Over the past year, the fund has paid dividends
of $0.89 per share and had a capital gains distribution of $0.65
per share.
a. Find the investor's holding period return, given that this
no-load fund now has a net asset value of $9.11. ( answer in % and
2 decimal places)
b. Find the holding period return, assuming all the dividends
and capital gains...

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