An investor purchases 100 shares of a company at a price of 320, whereas face value per
Question:
An investor purchases 100 shares of a company at a price of ₹320, whereas face value per share is ₹10. He/she expects to get 120% dividend at the end of one year and expected market price at the end of the year is ₹380. Calculate the return on equity.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (QA)
Answered By
Gaurav Soni
Teaching was always an area where I can pursue my passion. I used to teach my friends and junior during my school and college life. After completing my professional qualification (chartered accountancy) and before joining my job, I also joined an organization for teaching and guidance to my juniors. I had also written some articles during my internship which later got published. apart from that, I have also given some presentations on certain amendments/complex issues in various forms.
Linkedin profile link:
https://www.linkedin.com/in/gaurav-soni-38067110a
5.00+
7+ Reviews
13+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
An investor purchases 100 shares of a company at a price of 160, whereas face value per share is 10, he/she expects to get 90% dividend at the end of one year and expected market price at the end of...
-
An investor purchases 100 shares of a company at a price of 60. At the end of one year, he gets a dividend of 5 per share and sells the share in the market at a price of 67 per share after one year....
-
An investor purchases 100 shares of a company at a price of 50. At the end of one year, he/she gets a dividend of 8 per share and sells the share in the market at a price of 47 per share after one...
-
Calculate the heat required to raise 50 kg of solid sodium carbonate (Na2CO3) from 10C to 50C at 1atm using (a) The true heat capacity of Na2CO3, which is 1.14 kJ / (kg C). (b) A heat capacity...
-
A summary of the separate income of Pod Corporation and the net income of its 75 percent-owned subsidiary, Sev Corporation, for 2011 is as follows: Sev Corporation sold machinery with a book value of...
-
What is the relationship between information and the management functions?
-
An object is moving in a circle with constant speed. Its kinetic energy is constant since the speed does not change. Would you conclude that the total external force acting on it is zero?
-
After graduating from dental school two years ago, Dr. Lauren Farish purchased the dental practice of a long-time dentist who was retiring. In January of this year she had to replace the outdated...
-
calculate both intrinsic value and time value for the options that you have picked. ANZ GROUP HOLDINGS LIMITED ANZ LAST PRICE / TODAY'S CHANGE $25.280+$0.350 (1.403 %) Industry Group: Banks VOLUME...
-
An investor purchases 200 shares of a company at a price of 150. At the end of one year, he/she gets a dividend of 18 per share and sells the share in the market at a price of 147 per share after one...
-
Show whether the following items are expenses or asset: (a) Purchased furniture of 1,00,000 and issued cheque (b) Purchased machinery of 1,50,000 from DD Enterprises (c) Purchased goods of 1,80,000...
-
What is a Self-Reflective Essay
-
If you were conducting an actuarial valuation for an Australian defined benefit superannuation fund, what assumption for salary (wage) inflation would you use? In particular, consider a fund whose...
-
1- Pick a company/industry (this can be a firm or industry that you currently work in) and explain how you would go about estimating the demand for your product or service. 2- Also form a regression...
-
What are the similarities and differences between Theodor Adorno and colleagues (1950) and Billing 1995 in their concepts, theoretical approaches, assumptions and methods on the formation of a...
-
How organizations use testing in their diversity strategy. Use this to guide you: "Organizations use testing as a device for ensuring they hire the right person, as a tool for helping employees...
-
Show all the workings and explain the position of the directional vector for your company in a specific quadrant and recommend which strategy JP Morgan should pursue, given their position on the...
-
Howard loaned $8,000 to Bud two years ago. The terms of the loan call for Bud to pay annual interest at 8%, with the principal amount due in three years. Until this year, Bud had been making the...
-
Explain why each of the following is either a private good or a public good: traffic lights, in line skates, a city park, a chicken salad sandwich, a tennis racket, national defense, a coastal...
-
On January 1, 2012, Sheperd Corporation had $1,200,000 of common stock outstanding that was issued at par and retained earnings of $750,000. The company issued 30,000 shares of common stock at par on...
-
Whitten Corporation was organized on January 1, 2012. It is authorized to issue 20,000 shares of 6%, $50 par value preferred stock and 500,000 shares of no-par common stock with a stated value of $1...
-
The stockholders equity accounts of Omega Corporation on January 1, 2012, were as follows. Preferred Stock (7%, $100 par noncumulative, 5,000 shares authorized) ...$ 300,000 Common Stock ($4 stated...
-
You took out a loan woth an effective annual interest rate of 1 6 percent. What is the equivalent quarterly ( 3 month ) interest rate on this loan.
-
Sia Dance Studios has an annual cash dividend policy that raises the dividend each year by 2 % . Lastyear's dividend, Div 0 , was $ 3 per share. The company will be in business for 4 0 years with no...
-
Part 3 Butterfly Strategy A common strategy in fixed income is the butterfly strategy; it profits from a parallel shift in the yield curve. In this problem, you will construct a portfolio to execute...
Study smarter with the SolutionInn App