Calculate the return and the return relative for the following assets: a. A preferred stock bought for
Question:
Calculate the return and the return relative for the following assets:
a. A preferred stock bought for $70 per share, held one year during which $5 per share dividends are collected, and sold for $63
b. A warrant bought for $11 and sold three months later for $13
c. A 12 percent bond bought for $870, held two years during which interest is collected, and sold for $930.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (1 review)
Calculating return R for these assets a R ps D t P E P B P B where D t ...View the full answer
Answered By
Asim farooq
I have done MS finance and expertise in the field of Accounting, finance, cost accounting, security analysis and portfolio management and management, MS office is at my fingertips, I want my client to take advantage of my practical knowledge. I have been mentoring my client on a freelancer website from last two years, Currently I am working in Telecom company as a financial analyst and before that working as an accountant with Pepsi for one year. I also join a nonprofit organization as a finance assistant to my job duties are making payment to client after tax calculation, I have started my professional career from teaching I was teaching to a master's level student for two years in the evening.
My Expert Service
Financial accounting, Financial management, Cost accounting, Human resource management, Business communication and report writing. Financial accounting : • Journal entries • Financial statements including balance sheet, Profit & Loss account, Cash flow statement • Adjustment entries • Ratio analysis • Accounting concepts • Single entry accounting • Double entry accounting • Bills of exchange • Bank reconciliation statements Cost accounting : • Budgeting • Job order costing • Process costing • Cost of goods sold Financial management : • Capital budgeting • Net Present Value (NPV) • Internal Rate of Return (IRR) • Payback period • Discounted cash flows • Financial analysis • Capital assets pricing model • Simple interest, Compound interest & annuities
4.40+
65+ Reviews
86+ Question Solved
Related Book For
Investments Analysis And Management
ISBN: 9781118975589
13th Edition
Authors: Charles P. Jones, Gerald R. Jensen
Question Posted:
Students also viewed these Business questions
-
11. Arrange the following and describe the resulting color. Note: 1.0R means red at 100% intensity; 0.5G means green at 50% intensity For example: 1.0R+ 0.5G +0.75B means: Red Slider all the way up,...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
Consider a process consisting of five resources that are operated eight hours per day. The process works on three different products, A, B, and C; Resource Number of Workers Processing Time for A...
-
An analysis of the transactions made by S. Moses & Co., a certified public accounting firm, for the month of August is shown below. The expenses were $650 for rent, $4,900 for salaries, and $500 for...
-
Repeat Exercise 3 for the case in which the bomber is facing away from the launch site, as shown in the figure. Data from in Exercise 3 A bomber is flying horizontally at an altitude of 3200 feet...
-
What characteristics of the product or manufacturing process would lead a company to use a process costing system? Give two examples of companies that are likely to be using process costing. What...
-
Mark Gershon, owner of a musical instrument distributorship, thinks that demand for guitars may be related to the number of television appearances by the popular group Maroon 5 during the previous...
-
6. To a ground observer the block C is moving with v, and the block A with v. B is moving with v relative to C as shown in the figure. Identify the correct statement. (a) V-V =Vo (b)= A C B (c) V+V =...
-
Using the five years of returns, assume that one of the five years during the second half of the decade, 20152019, shows a loss of 10 percent. What would the geometric mean of the remaining four...
-
The difference in meaning of the arithmetic and geometric mean, holding Extell stock over the period January 1, 2008, through December 31, 2012, for two different investment strategies, is as...
-
Ilene Ishi is planning to fund an irrevocable charitable remainder annuity trust with $100,000 of cash. She will designate her sister, age 60, to receive an annuity of $5,000 per year for 15 years...
-
In general, labels must be accuratethey must use words as those words are understood by the ordinary consumer. (True/False)
-
Consumers may have more protection under state laws than under federal laws. (True/False)
-
What are the differences between an emerging country and a developing country?
-
How can you protect intellectual property rights (IPR) in a global firm through reciprocity and trust to achieve efficient and equitable outcomes in partnerships?
-
One who leases consumer goods in the ordinary course of business does not, under any circumstances, have to disclose all material terms in writing. (True/False)
-
Why would someone consider how broadly or narrowly the relevant market is considered to be so critical to the results when HHI values are used to evaluate mergers?
-
At 31 December 20X9, the end of the annual reporting period, the accounts of Huron Company showed the following: a. Sales revenue for 20X9, $ 2,950,000, of which one- quarter was on credit. b....
-
What is the likely explanation for the stock market's negative performance in 2000-2002?
-
Suppose that you know with certainty that corporate earnings next year will rise 15 percent above this year's level of corporate earnings. Based on this information, should you buy stocks?
-
What does a steepening yield curve suggest about the economy? What about an inverted yield curve?
-
The transmission line is terminated with 50 load resistor. Power with is delivered into this load is -30 dBm. Calculate the magnitude of voltage drop across this load resistor
-
An object with a weight of 1762 N is sitting on a slope at an angle of 63 degrees. What is the force perpendicular component of its weight? Leave no space between the answer and units
-
If a spaceship is approaching you at a speed of .75 the speed of light, what is the new wavelength for a blue laser that's shown at you? (assume the wavelength as viewed by the rest frame of the...
Study smarter with the SolutionInn App