1. Stock Returns If the share price of ABC company rises from $12 to $15 over a one-year period, what is the rate of return to the shareholder given each of the following:

1) The company paid no dividends

2) The company paid a dividend of $1 per share at the end of the year

2. Cartys Choices Brian Carty, a prominent investor, is evaluating investment alternatives. If he believes an individual equity will rise in price from $59 to $71 in the coming one-year period, and the share is expected to pay a dividend of $1.75 per share, and he expects at least a 15% rate of return on an investment of this type, should he invest in this particular equity? Please explain.

3. Vaniteuxs Returns (A). Spencer Grant is a New York-based investor. He has been closely following his investment in 100 shares of Vaniteux, a French firm that went public in February 2010. When he purchased his 100 shares at 17.25 per share, the euro was trading at $1.360/. Currently, the share is trading at 28.33 per share, and the dollar has fallen to $1.4170/.

1) If Spencer sells his shares today, what percentage change in the share price would he receive (that is, the return in )?

2) What is the percentage change in the value of the euro versus the dollar over this same period?

3) What would be the total return (that is, the return in $) Spencer would earn on his shares if he sold them at these rates?