An investor buys shares in a mutual fund for $20. At the end of the year the fund distributes a dividend of $0.58, and after the distribution the net asset value of a share is $24.31. What is the investor's percentage return on the investment?
Answer to relevant QuestionsIf an investor buys shares in a no-load mutual fund for $30 and after five years the shares appreciate to $50, what is (1) the percentage return and (2) the annual compound rate of return using time value of money? Over the last five years, corporation A has been consistently profitable. Its earnings before taxes were as follows: a. If the corporate tax rate was 25 percent, what were the firm’s income taxes for each year? b. ...Fill in the table using the following information. Assets required for operation: $2,000 Case A—firm uses only equity financing Case B—firm uses 30% debt with a 10% interest rate and 70% equity Case C—firm uses 50% ...The cost of capital for a firm is 10 percent. The firm has two possible investments with the following cash inflows: a. Each investment costs $480. What investment(s) should the firm make according to net present value? b. ...Investments Quick and Slow cost $1,000 each, are mutually exclusive, and have the following cash flows. The firm’s cost of capital is 10 percent. a. According to the net present value method of capital budgeting, which ...
Post your question