Nano-Motors Corp. has stock outstanding which sells for $10 per share. Macro-Motors Inc. shares cost $50 each.
Question:
a. An investor buys 100 shares of Nano-Motors. A year later the stock sells for $15. Calculate the total return in dollar terms and in percentage terms.
b. Another investor buys 100 shares of Macro-Motors stock. A year later the stock has risen to $56. Calculate the total return in dollar terms and in percentage terms.
c. Why is it difficult to say which investor had a better year?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 22% (9 reviews)
a Total dollar return 500 Total return 50 b Total do...View the full answer
Answered By
Atuga Nichasius
I am a Highly skilled Online Tutor has a Bachelor’s Degree in Engineering as well as seven years of experience tutoring students in high school, bachelors and post graduate levels. I have a solid understanding of all learning styles as well as using asynchronous online platforms for tutoring needs. I individualise tutoring for students according to content tutoring needs assessments.
My strengths include good understanding of all teaching methods and learning styles and I am able to convey material to students in an easy to understand manner. I can also assists students with homework questions and test preparation strategies and I am able to help students in math, gre, business , and statistics
I consider myself to have excellent interpersonal and assessment skills with strong teaching presentation verbal and written communication
I love tutoring. I love doing it. I find it intrinsically satisfying to see the light come on in a student's eyes.
My first math lesson that I taught was when I was 5. My neighbor, still in diapers, kept skipping 4 when counting from 1 to 10. I worked with him until he could get all 10 numbers in a row, and match them up with his fingers.
My students drastically improve under my tutelage, generally seeing a two grade level improvement (F to C, C to A, for example), and all of them get a much clearer understanding!
I am committed to helping my students get the top grades no matter the cost. I will take extra hours with you, repeat myself a thousand times if I have to and guide you to the best of my ability until you understand the concept that I'm teaching you.
5.00+
2+ Reviews
10+ Question Solved
Related Book For
Introduction to Corporate Finance What Companies Do
ISBN: 978-1111222284
3rd edition
Authors: John Graham, Scott Smart
Question Posted:
Students also viewed these Corporate Finance questions
-
An investor buys 100 shares of a $40 stock that pays an annual cash dividend of $2 a share (a 5 percent dividend yield) and signs up for the dividend reinvestment plan. a) If neither the dividend nor...
-
Why is it difficult for a firm with weaker cash flows to mimic a dividend increase undertaken by a firm with stronger cash flows?
-
Why is it difficult to implement mutual exclusion and condition variables in an environment? Where like CPUs do not share any memory? What approach and mechanism could be used to make such features...
-
Please help me calculate the current assets and current liabilities. Cash and cash equivalents Deposits Marketable securities Inventory Property & equipment, net Loan to shareholders Notes receivable...
-
How do different ethnic and cultural norms affect acknowledgment responses?
-
Explain the role of genetic mutations and natural selection in driving evolutionary change, and discuss how genotypic variation can lead to adaptation in various environments.
-
The composite bar system in Figure 1.48 consists of a steel bar and a bronze bar that are both securely attached to a rigid block and rigid supports. The system is loaded with a total load P at the...
-
Given a database of the results of an election, find the number of seats won by each party. There are some rules to going about this: There are many constituencies in a state and many candidates who...
-
RITY (Percent of terrorists caught) The blue curve on the following graph shows the tradeoff between security and tourism; that is, combinations of security and tourism above the blue curve are not...
-
1. Create and upload a histogram of the salary data for the city of Bell, where each bar width is about 50,000 US dollars. (Data for the histogram is at the bottom). a.) Is the distribution of the...
-
You purchase 1,000 shares of Spears Grinders Inc. stock for $45 per share. A year later, the stock pays a dividend of $1.25 per share and it sells for $49. a. Calculate your total dollar return. b....
-
David Rawlings pays $1,000 to buy a five-year Treasury bond that pays a 6% coupon rate (for simplicity, assume annual coupon payments). One year later, the markets required return on this bond has...
-
What is the longest (proper) prefix of the string "cgtacgttcgtacg" that is also a suffix of this string?
-
Anesthesia equipment for Shepherd Surgery requires preventive maintenance every month. A contract to pay $1,500 per month for maintenance on its five anesthesia machines was executed. How would...
-
The following table is a report of the first quarter of 20XX (January-March) from a 400-bed medical center regarding its insurance categories. In this example, deaths are included in discharges....
-
Which theoretical perspective would look at how healthcare is structured and see that it is problematic that CEOs of large pharmaceutical companies benefit from the profits made from patient...
-
A university professor is working as a consultant to understand in depth the reasons for absenteeism of employees working in a private sector organization. What type of research is the professor is...
-
Outline some of the key issues that effect aboriginal and Torres Strait islander peoples where they are disadvantaged compared to the rest of the Australia population ?
-
Consider the dynamic system subject to the initial conditions x(0) = 1 and y(0) = 1. What are the steady state values of x and y for this system of equations? (b) What are the eigenvalues for this...
-
For each of the following transactions, indicate whether it increases, decreases, or has no effect on the following financial ratios: current ratio, debt-to-equity ratio, profit margin ratio, and...
-
A tank is being filled by having a flow at the rate of \(\dot{m}\) into the system. Unfortunately there is a tiny hole at the bottom and the water is leaking out of the system. Develop a basic model...
-
Arbor Systems and Gencore stocks both have a volatility of 40%. Compute the volatility of a portfolio with 50% invested in each stock if the correlation between the stocks is (a) +1, (b) 0.50, (c) 0,...
-
Suppose Wesley Publishings stock has a volatility of 60%, while Addison Printings stock has a volatility of 30%. If the correlation between these stocks is 25%, what is the volatility of the...
-
Using the data in Table 11.1, a. Compute the annual returns for a portfolio with 25% invested in North Air, 25% invested in West Air, and 50% invested in Tex Oil. b. What is the lowest annual return...
-
The increasing volatility in the global economy has caused investors to seek out safer investments alternatives. Risk is inevitable in all investments. A capital budget is used to help investors plan...
-
You invest 50% of your financial assets in the Vanguard Total Stock Market ETF (VTI) and 50% in the Vanguard Total Bond Market ETF (BND). VTI has an expected return of 8% and a standard deviation of...
-
You have found the car you would like to purchase. The negotiated price = $57,500 and you are taking out a loan with a 7.5% APR compounded monthly for 6 years. What are your monthly payments? Car...
Study smarter with the SolutionInn App