Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. Marie purchased 100 shares of a Canadian utility stock in January 20X1. She calculated annual shareholder return to be 5 percent, 3 percent, and

1. Marie purchased 100 shares of a Canadian utility stock in January 20X1. She calculated annual shareholder return to be 5 percent, 3 percent, and 7 percent for the years 20X1, 20X2, and 20X3, respectively. What was the annual average compound return of her investment to the end of 20X3? 2. Thomas owns Gaz Mtropolitain preferred stock. If this preferred stock pays 6.25 percent based on a par value of $25, what is the dollar amount of the dividend for one share of Gaz Mtropolitain? 3. A sports equipment company issued a $3 cumulative preferred stock. In 20X1, the firms board of directors voted to omit dividends for both the companys common and also its preferred stock. The corporations board of directors voted to pay dividends in 20X2. a. How much did the preferred shareholders receive in 20X1 b. How much did the common shareholders receive in 20X1 c. How much did the preferred shareholders receive in 20X2? 4. Two years ago, you purchased 100 shares of a cola company. Your purchase price was $50 a share, plus a commission of $5 per share, for a total cost of $55 per share. After one year, the stocks market value had risen to $58. At the end of two years, you sold your cola company stocks for $68 a share, less a per-share commission of $2. During the two years you held the stock, you received dividends of $0.56 per share for the first year and $0.68 per share for the second year. a. Calculate your annual shareholder return for each of the two years you owned the stock. b. Calculate your annual average compound return

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_2

Step: 3

blur-text-image_3

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

Essentials Of Real Estate Finance

Authors: David Sirota, Doris Barrell

14th Edition

1475428391, 9781475428391

More Books

Students also viewed these Finance questions