Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You purchased 1000 shares of stock in FMC for $27 per share on January 1, 2006. Over the next four years you received 50 cents

You purchased 1000 shares of stock in FMC for $27 per share on January 1, 2006. Over the next four years you received 50 cents per share annually in dividends. On December 31, 2009 you sell all your shares of FMC for $55.50 per share. Brokerage commisssions are 4% of the total transaction value when buying and selling. (1) What has been your total gross return (in percent) over the four years? (2) What has been your average annual return over the four years?

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

Urban Infrastructure Finance And Management

Authors: K. Wellman, Marcus Spiller

1st Edition

0470672188, 978-0470672181

More Books

Students also viewed these Finance questions