Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1) A) At the beginning of last year, you invested $4000 in 80 shares of the Chang Corp. During the year, chang paid dividends of

1) A) At the beginning of last year, you invested $4000 in 80 shares of the Chang Corp. During the year, chang paid dividends of $5 per share. At the end of the year, you sold the 80 shares for $59 a share. Compute your total HPY on these shares and indicate how much was due to the price change and how much was due to the dividend income B) February 1, you bought 100 shares of stock in the Fr corporation for $34 a share and a year later you sold it for $39 a share. During the year, you received a cash dividend of 1,5 a share . Compute your HPR and HPY on this Fra stock investment. C) On august 15, you purchased 100 shares of stock in the cara cotton company at $65 a share and a year later you sold it for $61 a share. During the year, you received dividends of $3 a share. Compute your HPR and HPY on your investiment in Cara cotton. D) The rates of return computed in A,B AND C are nominal rates of return. Assuming that the rate of inflataion during the year was 4 percent, compute the real rates of return on these investments. Compute the real rates of return if the rate of inflation was 8 percent.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Mein Ultimativer Weihnachts Planer

Authors: Zizo Nimane

1st Edition

B0CM2J8GTG

More Books

Students also viewed these Finance questions

Question

Explain the process of justifying a budget.

Answered: 1 week ago

Question

what is the best desicion for capsim round 2 production daze dell

Answered: 1 week ago