Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose that you purchased 100 shares of Blucora (BCOR) common stock 20 years ago for $50.00 per share (excluding commission). Since then they have had

Suppose that you purchased 100 shares of Blucora (BCOR) common stock 20 years ago for $50.00 per share (excluding commission). Since then they have had four stock splits: 2:1 , 2:1, 2:1 and 1:10. they are currently selling for $20.50 per share, and you havent sold any of your shares.
1. how manh shares are in the account
2. what is the split adjusted price that you paid for the stock?
3. what is your return on the Blucora stock? (calculate it both ways. That is , find the return using total dollar amounts and find the return using split-adjusted price.
4. what is the average annual return on the stock.
5. how much of a "bagger" is BCOR? image text in transcribed
Fin 315 Practice Problems: Stock Splits Suppose that you purchased 100 shares of Blucora (BCOR) common stock 20 years ago for $50.00 per share (excluding commission). Since then they have had four stock splits 2:1,2:1,2:1, and 1:10. They are currently selling for $20.50 per share, and you haven't sold any of your shares. 1. How many shares of stock are now in the accounn? Answer: 80 shares of BCOR 2. What is the split-adjusted price that you paid for the stock? Answer: $ per share 3. What is your return on the Blucora stock? (Calculate it both ways. That is, find the return using total dollar amounts and find the return using the split-adjusted price.) Answer: The return is % 4. What is the Average Annual Return on the stock? Answer; The Average Annual Retum is % 5. How much of a "bagger" is BCOR? Answer: Fin 315 Practice Problems: Stock Splits Suppose that you purchased 100 shares of Blucora (BCOR) common stock 20 years ago for $50.00 per share (excluding commission). Since then they have had four stock splits 2:1,2:1,2:1, and 1:10. They are currently selling for $20.50 per share, and you haven't sold any of your shares. 1. How many shares of stock are now in the accounn? Answer: 80 shares of BCOR 2. What is the split-adjusted price that you paid for the stock? Answer: $ per share 3. What is your return on the Blucora stock? (Calculate it both ways. That is, find the return using total dollar amounts and find the return using the split-adjusted price.) Answer: The return is % 4. What is the Average Annual Return on the stock? Answer; The Average Annual Retum is % 5. How much of a "bagger" is BCOR

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

More Books

Students also viewed these Finance questions