Question: File Home Insert Draw Page Layout Formulas Data Review View Developer Help Share Comments Insert Arial 12 ' ab Wrap Text o X Delete Paste

 File Home Insert Draw Page Layout Formulas Data Review View Developer

File Home Insert Draw Page Layout Formulas Data Review View Developer Help Share Comments Insert Arial 12 ' ab Wrap Text o X Delete Paste F PS Analyze Sensitivity Data v ar A - SEB Merge & Center $ %, 6000 .00 Conditional Format as Cell Formatting Table Styles Sort & Find & Filter Select Editing ! Format Clipboard Font Alignment Number Styles Cells Analysis Sensitivity 145 : X f =143-137 A B C E F H J L N P Q R S T U You plan to purchase 100 shares of EXCO today, and sell them 12 years from today when your child enters college. Calculate the estimated purchase price, sales price, and capital gain for this transaction. The firm pays an annual dividend. What are the amounts of the 12 annual dividends you'll receive on all shares owned during the 12 years you own this stock. Dividends are received at the end of each year. Most recent annual dividend per share: Required Rate of Return: Years until Sale: Shares Purchased: Purchase/Sale commision & fees per 100 shares (round lot') 2.80 7.6% 12 100 8.50 The most recent 6 annual p/share dividends are as follows: 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 DIV 1 DIV 2 DIV 3 3 DIV 4 DIV 5 DIV 6 DIV 7 DIV 8 DIV 9 DIV 10 DIV 11 DIV 12 287.58 1 295.36 2 303.363 311.57 14 320.00 5 328.666 337.567 346.69 8 356.08 9 365.71 10 375.61 11 385.78 12 Hint: there are 6 years given, but 5 growth periods 2.45 2.50 2.55 2.60 2.70 2.80 Calculate the assumed compounding growth rate (hint above): 2.7% What was the Holding Period Return on sale: 9821.06% Calculate the first p/share dividend you'll receive (D1): 2.88 What was the GEOMETRIC annualized rate: 46.68% What is the total cost of the purchase (including commissions & fees): 5,885.38 What was the ARITHMETIC annualized rate: 818.42% Calculate the assumed net sales price (after commissions & fees): Given the dividends paid over the years as calculated above, what was the Total Return for this investment in dollar terms? 41 42 43 Calculate the first dividend the new owner will receive: Net sales price 3.96 5.202.27 44 Total Return $ 3,330.86 45 AC What is the Capital Gain on the investment when sold: (683.10) student name main Ready Accessibility: Investigate 3 + 70% Type here to search O a 097 19 8:56 PM 4/11/2021 S 2 File Home Insert Draw Page Layout Formulas Data Review View Developer Help Share Comments Insert Arial 12 ' ab Wrap Text o X Delete Paste F PS Analyze Sensitivity Data v ar A - SEB Merge & Center $ %, 6000 .00 Conditional Format as Cell Formatting Table Styles Sort & Find & Filter Select Editing ! Format Clipboard Font Alignment Number Styles Cells Analysis Sensitivity 145 : X f =143-137 A B C E F H J L N P Q R S T U You plan to purchase 100 shares of EXCO today, and sell them 12 years from today when your child enters college. Calculate the estimated purchase price, sales price, and capital gain for this transaction. The firm pays an annual dividend. What are the amounts of the 12 annual dividends you'll receive on all shares owned during the 12 years you own this stock. Dividends are received at the end of each year. Most recent annual dividend per share: Required Rate of Return: Years until Sale: Shares Purchased: Purchase/Sale commision & fees per 100 shares (round lot') 2.80 7.6% 12 100 8.50 The most recent 6 annual p/share dividends are as follows: 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 DIV 1 DIV 2 DIV 3 3 DIV 4 DIV 5 DIV 6 DIV 7 DIV 8 DIV 9 DIV 10 DIV 11 DIV 12 287.58 1 295.36 2 303.363 311.57 14 320.00 5 328.666 337.567 346.69 8 356.08 9 365.71 10 375.61 11 385.78 12 Hint: there are 6 years given, but 5 growth periods 2.45 2.50 2.55 2.60 2.70 2.80 Calculate the assumed compounding growth rate (hint above): 2.7% What was the Holding Period Return on sale: 9821.06% Calculate the first p/share dividend you'll receive (D1): 2.88 What was the GEOMETRIC annualized rate: 46.68% What is the total cost of the purchase (including commissions & fees): 5,885.38 What was the ARITHMETIC annualized rate: 818.42% Calculate the assumed net sales price (after commissions & fees): Given the dividends paid over the years as calculated above, what was the Total Return for this investment in dollar terms? 41 42 43 Calculate the first dividend the new owner will receive: Net sales price 3.96 5.202.27 44 Total Return $ 3,330.86 45 AC What is the Capital Gain on the investment when sold: (683.10) student name main Ready Accessibility: Investigate 3 + 70% Type here to search O a 097 19 8:56 PM 4/11/2021 S 2

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!